CEPH gapped up, printed a wide, bullish OR, followed by a handle in the upper range. The handle leads to price expansion and a full measured move as measured using the Fibonacci tool from the ORL to the ORH.
REGN was found through the Trade-Ideas scanner using the momentum scan. Again, a small, tight handle with NR7, leads to a full measured move of the last leg up.
After early weakness, POT retraced 62% from morning high/low. it printed 3 IBs, the last of which was NR7 with body in the shadow of the previous bar (red on red) - very bearish.
The SPY formed a mini flag after breaching its trendline, setting up a low risk short.
A reader submits the following: BTU: Entry on the break of the 11:45am candle which is an inside NR7 bar. It was also basing under the round number $28.00 and it looked liked it tested the PDH a few times. Target just ~ $29.00. Action went sideways for most of the afternoon until a nice little jump at around 2:30ish. Had a decent profit but gave most of it back because it never reached my target. In retrospect I should of at least partialed after the 3 WRB.
The GG trade is mine. I took a partial at $28.00 after a small profit because it was an obvious support level. In my heart, I had a good feeling that it would eventually go lower, but price is pre-disposed to consolidate at obvious support levels, whole $ levels, fib. targets, 3 consecutive red bars. I'm being repetitious on purpose. The key take away is sticking to the trading rules to protect profits. Price could have easily reversed at support and retraced.
HANS was either going to form a bear flag or retrace after the sharp decline. It set up a nice base on the 3 minute chart so I took a chance. Break on IB, stop a few pennies below the IB. Once it took out R2 on a closing basis, the retracement was obvious. Partial after 3 WRBs. Stop on break of NRIB.
ENER was a B&B NRIB. It stalled at the 62% Fib. extension of the ORL to the base. I'm not surprised, and I guess I should lower my expectations on long setups since we are now in a downtrend.
LEH was a failed BO at $24.00, followed by a NRIB. I took a partial at the first support level. This allows me to leave a BE stop on the balance of the trade because most stocks attempt to bounce at support so they need a little wiggle room. Thought it might retest the the ORL after the second support level was taken out, but buyers jumped in at $21.50.
SOHU carved out a bearish rounded top, followed by a sharp move into support. It consolidated that move by printing 3 IBs, the last of which was NR7 (price & volume contraction ahead of expansion). I took a partial as price approached support and exited the balance on a capitulation volume spike.
BHP was a Briefing gapper. It carved out a bearish flag-like pattern. It wasn't really obvious from the volume that this was a flag. I usually like to see a clearer sign of declining volume. However, the 5 minute time frame (below) was clear in its rejection of price at the declining 20 ema and I decided to take the trade. I took a partial after 3 consecutive WRBs and was stopped out when price reversed after carving out a hammer.
OXY set up out a low risk entry at the base of yesterday's high. Once in the trade I wasn't really feeling any momentum and decided to play a textbook Trader-X exit at the 38% Fib. extension of the previous day low to the ORH.
My first two morning shorts only trickled in until the market sold off and at one point I was more than a little frustrated and thought I would likely get stopped out. But once the market reversed I was happy I had them, especially SNDK.
AMZN, from the WL and the Briefing.com gapper list, had great volume so I was happy to jump in as price broke out of a three bar consolidation. My target was 100% Fib. extension of the ORL to the consolidation base. I took a partial after 3 WRBs to lock in some profits.
I was scoping out DRYs all day because it is so far extended. I was closely monitoring the E-mini NASDAQ futures as they made a new high just before reversing. DRYS broke down before the Futures confirmed. But there was no head fake on DRYS. I took a partial as price approached Friday's low and put a stop at $110.50 based on the action on the 1 minute chart.
AGU from HCPG's trading list, looked like an inverted C&H. I took a partial at the blue line which was a support and pivot area from late last week, but I guess it wasn't necessary. If I didn't have so many open positions at the same time, I might have done better with this one, but it's good. I'm very happy with it.
GRMN was gap down and just before it fell down, I was anticipating, it might turn into a long. Then it carved out a NR hanging man.
AAPL gapped up on the open and carved out a bullish green bar. The 2nd bar was almost inside (breach by a few cents). I entered long on a break of the whole $ number $135.00. I used the 5 min. timeframe below to set my stop (red line segment plus a few cents). I booked a partial profit after 3 WRBs on the 15 min.. This lined up nicely with the 62% Fib. extension of the previous day low to the ORH. I tightened the stop below the last WRB and exited the balance as price approached the next round $ number $140.00.
As you can see from the daily timeframe below, AAPL has carved out a bullish rounded base at the gap level. The next step will be a gap fill, but I'd like to see price consolidate before that happens, either with a couple of inside bars or a C&H pattern. But since this is AAPL, I won't be surprised if it just goes straight up.
If you miss the big move, sometimes you get lucky with a NR consolidation and a nudge from the 5 period ema. Exit after 3 WRBs.
AAPL - wide earnings gap. The setup felt similar to my RIM.TSX trade from Monday. After gapping lower, price carves out a tight sideways pattern until the down sloping 5 period ema catches up. We had two NRIBs, the second of which was NR7 leading into price expansion. The BO bar (7/15) closes near its low which is one of my critical success factors in this type of setup. I took a partial as price approached the round $ number on the 3rd WRB.
JOYG was not a wide gap, but it carved out a number of long upper shadows and could not close above the down sloping 5 period ema. Short the break of red inverted hammer. Again, the BO bar closes near its low signalling a great start. I missed my partial on the third WRB, so I tightened my stop, but I was rewarded with a hanging man and price broke through yesterday's pivot low at the $50.00 pt. I tightened the stop again as price consolidated at $50.00 and was stopped out on a partial. Shortly after, price swooned down to S2 (red line) on a huge volume spike and that was the end of the move.
Today was the flushing out day that we've all been waiting for. I took two longs this afternoon AAPL and RIM.TSX. Here's a picture of the AAPL trade. The bullish rounded bottom is a great long signal because it shows that demand exceeds supply. Everytime bears try to push price lower, more buyers step up. I'm holding a partial on RIM.TSX for a swing with a BE stop.
