Monday, July 09, 2007

Dummy Gapper Trade of the Day - Cummins Inc. (Public, NYSE:CMI)

CMI was a highchartpatterns pick from the latest newsletter. I waited for a low risk base & break entry to develop and placed a dummy, buy stop order two pennies above the base (4th bar high). My stop was the previous bar low. I took a partial as price approached the 38% Fibonacci extension of the previous day low to the 4th bar high. I watched for a normal retracement of 38% (last leg up) as CMI consolidated sideways before moving higher. I booked the balance of my profit as price approached the 75% extension. A big thanks to HCPG!

6 comments:

Alex said...

Jamie, thanks to your words of wisdom over the weekend and much contemplating, I am excited to see that I am looking at the same stock as you and got long exactly where you did. I didn't ride that bull the way you did, but I did manage to pull 2+pts. out of it. Also caught NVDA of the break of the 3rd 3min. bar as NVDA held its daily pivot point above 44. What are your thoughts about GWW? I thought it might break 95 today; maybe tomorrow.

Highchartpatterns said...

Great trade Jamie -- always nice to see you taking advantage of these runs. We were hoping you had been involved in TEX too.... next time.

Anonymous said...

how do u place fib extensions on esignal? ive tried and i dont know what levels im supposed to click on using the line tool, fib extension. any help would be appreciated.
p

Jamie said...

Hey Alex,

Nice work with CMI and NVDA! Happy to hear it.

GWW looks good on both the 15 min. and daily timeframes. I'll add it to my watch list for tomorrow as well. Just a word of caution as this market feels extended and will have to correct soon.

Jamie said...

HCPG,

Thanks for the newsletter. I was happy to catch CMI, plus I had a few of my own. I was also interested in SCHN but it did not take out the morning swing high. I'll keep watching as it consolidates today's big move.

Jamie said...

P,

If you want to change the preset values of the esignal Fib ext. tool, right click on the tool and change the settings to on/off.

If you want to use the tool, on a chart, left click and then place the tool on the previous day low. Move the mouse to today's opening range high on the 15 minute chart and left click again. Then drag the line to right of your chart and click again to ensure that the lines stay in place. In lieu of the ORH, you can also use the high of a flat base as I did with BIDU on Friday or you can also use the morning swing high like I did with CMI.