Tuesday, July 22, 2008

Gapper Dummy Trade - Millicom International Cellular SA (USA) (Public, NASDAQ:MICC)

As I mentioned in the comments section this morning, gappers that are ripping in pre-market are the ones I focus on. These generally have enough momentum to move price lower (higher). MICC was my first choice this morning. After the WOR, it sort of fell into a dead zone of offsets and eventually retraced back up to the declining 10 EMA. The key is to observe a series of lower highs, followed by price/volume contraction at or near the ORL. At first glance, it doesn't look like much, but if you do the math, you'll see that MICC was well worth the wait. I don't bother with Fibonacci extensions on really wide gaps.

ARTC, yesterday's gapper play, set up a 3 PP base, and low risk entry for a nice gain into the last hour.

Today, was mostly a gap fade day as many of this morning's gap downs were quick to take out the ORH.

10 comments:

roger said...

Hi TraderJamie,

Thanks for posting your trades.
i am learning a lot from your post.

regards,
david
philippines

Anonymous said...

Great to see how you consistently find good trades. Waiting for the perfect time to enter the trade, not rushing into the trade, is one other thing I need to learn from you apart from your trading style.

Just curious, how long you have been daytrading Jamie :)

Jamie said...

David,

Great, thanks for the feedback.

Jamie said...

Thanks Susan,

I'm not always so patient. I almost gave up on MICC, but I had to step out and when I came back, it was basing perfectly.

Trading on and off since Nov. 2001.

QQQBall said...

nice trade on the 3PP B/B.. that baby really got rolling.

Jamie said...

QQQ,

Each stick was progressively wider. Almost felt like the beginning of a parabolic move.

Rik said...

I enjoy getting your posts in my Google RSS Reader.

Could you do a posting defining some of the abreviations you use.

3PP, ORH, ORL, WOR, etc.

I am sure I will smack myself on the head when I read them.

Jamie said...

Rik,

Under key posts, there's a link for abbreviations and acronyms.

PP is pivot point
ORH is opening range high
ORL is opening range low
WOR is wide opening range

yr said...

Jamie,
Tried posting this yesterday, but was having issues with blogger.

Any reason why you use the low of the bodies instead of the wicks for drawing the blue line in MICC?

AAPL see a huge reversal after huge gap down on Tue. In your opinion, is there any nice low risk entry for the reversal play? Thanks

YR

Jamie said...

YR,

The MICC base formed close to the ORL so my line does not include the lower wicks of the offset bars.

For AAPL, there was a base that formed a handle at $154.00, After the base break wait for a NRB or NRIB because the BO bar is too wide for stop placement.