Gapper Dummy Trade - AnnTaylor Stores Corp. (Public, NYSE:ANN)

From the Briefing.com gapper list, ANN had good pre-market volume and price held in the upper range of the PM spike. Entered long as soon a price closed near the ORH after establishing support from the rising 5 period EMA. I think this is another good example of a Trader-X style trade.

The preliminary target was the 38% Fib. extension of the previous day low to the ORH. I was stopped out shortly after when I saw a gravestone doji stick.

Several nice trades from the HCPG trading list which I'll post later tonight.

Bullish Momentum Day - Apple Inc. (Public, NASDAQ:AAPL)

I was bullish AAPL going into the session because while the markets were pulling back, AAPL was holding its gains and consolidating sideways (see daily chart above).

After gapping up above yesterday's range, AAPL retraced and chopped around before carving out a bullish morning star reversal pattern. I took a partial when it couldn't hold $148.00 allowing for a 38% Fib retracement which would bring price back in the area of R2. After retracing, it carved out a bullish green hammer and thrust back up, but couldn't break the morning swing high. I stuck with it because today was the first day of the month/QTR and lots of fresh institutional money was being put to work. I was not expecting another retrace, but now I was stuck. My only hope now was that the rising 20 ema would provide support.

AAPL retraced the full 38% this time and reversed with a tweezer bottom and wide bullish engulfing bar. That morning swing high was formidable resistance, but the bulls prevailed.


SNDK was picture perfect - 3 IBs on declining volume, the last of which was NR. How momo is that? Too bad, even price and volume contraction can't turn a loser stock in a weak sector into a super hero. SNDK just couldn't break the daily pivot at $25.00, so I eventually dumped it out of frustration.

HANS had a choppy base but I couldn't help myself. It carved out a low risk green bar which closed at the base of resistance, so I jumped in. It did not extend fully. When I realized it had printed a perfect gravestone doji, I said goodbye.


Only one short today. The shooting star is outside, followed by an inside bar. I used the high of the IB as my stop and the low of the OB as my entry. Exit on volume spike at base of support.

Dummy Trade of the Day - Continental Airlines, Inc. (Public, NYSE:CAL)

The chart above is a 10 minute chart of CAL which gapped lower for the second straight day. Today's long lower shadow on the OR bar hinted of a gap fade and that's why I was quick to change over to the shorter timeframe. I took a low risk long entry as the third 10 minute bar opened. My target was the area between yesterday's low and close. My target was reached shortly after 11:00.

My next trade with CAL was short, which setup perfectly on the 15 minute timeframe below. Around noon, CAL carved out a gravestone doji reversal stick on the resistance line. The following bar was a spinning top and when the next bar took out the 10 period MA, I went short and covered as price hovered on the $43.00 mark for and extended period.