Friday, December 29, 2006

Dummy Trade of the Day - Interactive Intelligence (Public, NASDAQ:ININ)

ININ showed up on a scan and I waited until price narrowed on the support of the 10 period MA before going long. Same type of setup as MED yesterday.

Couldn't resist this gap up long on AAPL. Long on a break of the OR high. This is a 5 minute chart. Stopped out at $85.10.

Happy New Year!


Anonymous said...

Hey Jaime. How bullish are you going into early Jan. 2007. Lookin at the action on the QID, I find it pretty hard to be bullish. Am i too early into the bearish side. Double bottom with severe positive divergences on the QID measure at least 4 pts from here. What do you think?

Jamie said...

Hey Basim,
The QID is a mirror opposite of the QQQQ, and yes it looks like it has a solid base from which to move higher.

However, it is hard to forecast too far ahead especially given this week's low volume activity. The first week of January is generally very bullish and we may have a totally different view by the end of next week.

Near term, I would expect the NASDAQ to pullback and retest its breakout level around 2360-2375. On a slightly longer term, I think that sometime in 2007, we will retrace 38% of the bubble highs which will bring us to 2650.

Yaser Anwar, CSC (Trader- Equities & FX | Quoted 6 Times In WSJ, Twice in NYT & FT) said...


Out of the 5 books on your right panel, which one would you recommend the most? Tx!

Jamie said...

Technical Analysis of Stock Trends by Edwards and Magee is the best basic book on Technical Analysis. I bought my copy in a used book store. It's the 1955 edition and its timeless. The newer more pricey versions have extras added by other writers but there's not much value added. I also like the Pring book because it comes with a DVD. Once you have the basics on technical analysis, you'll need the Candlestick book to get an edge on reversal patterns, but first things first.

Anonymous said...

Why did you use 5 min chart for trading for AAPL instead of your usual 15 min? Thx


Jamie said...

Hi YR,

I actually used both the 15 and 5 minute timeframes for setting up my entry long into AAPL. In posting the 5 minute chart, I just wanted to show how price narrowed in an orderly fashion over the course of the first three 5 min. bars, making it a reasonably low risk entry on an uptick in volume. The 15 minute timeframe just shows a hammer and the second bar entry might looked rushed, when in fact it wasn't.