Sunday, October 10, 2010

Day Trade Analysis - AGCO, MOS, CAT, JOYG

Agribusiness names gapped up on the release of the USDA's bullish crop report. AGCO (agri farm equipment) had a bullish wide opening range. Price consolidated the gap through time in the upper portion of the OR at the base of the weekly pivot R2. The NRIB was the trigger. Place stop a few pennies below outside bar.

Wait for price to trade within the BB (Bolinger Band Std. dev. 2) to avoid lengthy consolidations, or worse, sling shots back to the retracement zone. Took a partial at 50% FE. Exit balance when price stalls at the whole $ level.

At the EOD, AGCO looks like a failed BO (shooting star). Expect price to retrace to gap support and possibly gap fill.

MOS - another Ag, breaks out of gap flag just below the weekly R2 and stalls, forms a handle and then goes on to extend to the measured move target.

CAT - Daily BO at $80.00. Been stalking this one a while.

JOYG was a HCPG newsletter pick at the daily spot (blue line). Here again the BB keeps us from entering until the initial breach has consolidated and JOYG is ripe to move higher. Took a partial at weekly R2.


x said...

Great post Jamie.

I noticed you mostly trade individual stocks, rarely I saw you trade SPY/future. Is there any reason for this? Would you apply the same methods if you were to trade SPY/future?

Jamie said...

Thanks x,

Yes, you could apply similar methods to SPY/Futures trade. I prefer to trade SPY/Futures on the gap fade side as opposed to the expansion side. I posted my futures trade on Oct. 7th with the $Tick chart which helps me manage the trade.

The reason I prefer to trade stocks over SPY/Futures is because I find SPY/Futures can be very choppy.

Banenga said...


have u always used the bollinger bands?

Jamie said...

Hi Banenga,

No, I'm just adding them now. I studied the free content on and decided to try the Bolinger Bands. The BBs help determine the correct timing of the entry.