Wednesday, September 03, 2008

Gapper Dummy Trade - Joy Global Inc. (Public, NASDAQ:JOYG)

I got a late start to my trading day due to some personal business. The first thing I did when I came in around mid-morning, was check the Trade-Ideas pre-market scans for gappers. JOYG was ripping lower in pre-market due to earnings. At 11:00 - 11:15 both JOYG and BUCY (sympathy play) printed NR7 (TI scan of watch list) on the 15 minute timeframe and that was my cue to get short. Both stocks exceeded the prelim. target (38% Fib. extension of the previous day to the ORL) helped along by lower oil, I suspect.

4 comments:

yr said...

Jamie,
Would you consider 10.35amET 5 min bar to be break of bear flag, hence a good entry point for JOYG? Thks

YR

Jamie said...

YR,

Bear flag a little steep, but yes good aggressive entry.

TL said...

Jamie,

For JOYG, what made you take the trade? The pattern looks quite choppy at the time of entry. Thank~

TL

Jamie said...

TL,

I was looking to enter on a low risk setup as it was getting late and I wanted to have something before lunch. I looked at JOYG on both 15 min. and 1 min. and it looked like it would at least retest the ORL so I took a chance. As you see, the ORL didn't even pause to consolidate, it just barreled through.