Thursday, August 03, 2006

Trade of the Day - Akamai Technologies Inc. NASDAQ (AKAM)

Click on charts for larger views.

It seems that AKAM is the trade of the day quite often lately. When I saw that it gapped down to my pivot line (thick blue line) on the open, I decided to watch it carefully to make sure the pivot would hold given this morning's weak market condition. Shortly after the 10:00 reversal time, I entered a long position. Shortly after lunch, AKAM took out its midday consolidation high on an uptick in volume and took off on a very steep bullish curve ignoring resistance to close at a new multi-year high. Notice how the 10, 20 and 50 MAs converged during lunch. When the MAs start to seperate the big move begins. During the afternoon move, notice how the real bodies of the candlesticks did not overlap. This tells you that you are in an orderly trade. Just keep moving your stop 10-20 cents below the previous 15 minute bar or half way up a really wide range bar for maximum profits. This type of action is my trading nirvana.

P.S. I traded each of these last three pivots and made money on each. I admit the second one was lame but it was profitable.

Here is the NVDA trade. Also a nice, easy to manage trade.


Anonymous said...

Nice work.

Do you ever make a losing trade ? I should probably have you manage my money - I am losing it left & right.


Jamie said...

Thanks CNS,

Still lots of scratches and losing trades but my ratio of winning trades has been steadily improving. I'm trading less - an average of 5-6 trades per day, down from 25-30. The blog helps a lot because it forces me to plan and analyse my trades.