Day Trade - Amazon.com, Inc. (Public, NASDAQ:AMZN)

AMZN was an earnings gap as discussed in Thursday's post. I placed my fibs from PDH to ORL. Price consolidated in the retracement zone and rolled over. Took a partial after 3WRBs and closed the position after AMZN carved out a hammer after tagging the weekly pivot P.

If the 20 EMA holds as resistance in early trade Monday, we could get a continuation play as we did with QCOM after its earnings gap.

QCOM was an earnings gap short on Thursday, but relatively disappointing given that we didn't get more sellers. The late day move up towards the downsloping 20 EMA proved to be resistance as it had no follow through and breached the PDL in early trade Friday for a gap continuation play.

I'll be watching AMZN for a similar setup tomorrow.

AAPL - Scalp trade - I knew that AAPL would attempt to BO of the base forming at the blue line. Once the triangle formed, it allowed for an early entry. Good thing, because the rally out of the base turned out to be lame.

Shanda Interactive Entertainment Ltd ADR (Public, NASDAQ:SNDA)

The first chart is the daily EOD Friday. I was looking to short SNDA below the middle blue line around $55.00.

SNDA gapped down on the open and carved out a hanging man (sort of - long lower shadow). The next stick was an IB in the lower shadow of the HM. The only caveat was the distance of the down sloping 5 period EMA (pink). I decided to take the trade anyway with a stop at PDL. If the distance from 5 ema too wide, stop has to be placed accordingly.

After my entry SNDA printed a doji with long lower shadow, which looked like it wanted to retrace and it did, but it held S1 as resistance and came back down for a fast move to the 50% FE of the late day swing high to the ORL. My target on the second half was eventually reached.

The daily has now carved out a base at $50.00 from a double top. Today's selling on high volume. So we have three consecutive lower closes on accelerating volume - looking for consolidation at the base, prior to BO.

Chinese internet ADRs, as a group were weak today - SOHU, SINA, NTES.

Cup & Handle - Reasearch In Motion Ltd. (USA) (Public NASDAQ: RIMM)

RIMM from the WL formed a C&H base. Cautious trading ahead of the FED. I waited until price took out the topping shadow and the round $ number $125.00. Low volume as the handle formed led to price and volume expansion on the BO. I took a partial after 3 consecutive WRBs and I was stopped out a while later as the markets started to sell off late in the session.

FWLT from my WL and a HCPG pick, gapped down and carved out an IB that closed at the base of the ORL and just under S2. My target was the daily reaction swing high from early April. Since the market was so weak, I took a partial at that level and moved stop to BE. Didn't get much more out of it.

Gapper Dummy Trade of Day - Biogen Idec Inc. (Public, NASDAQ:BIIB)

BIIB was very active in pre-market (Trade-Ideas pre-market scan), however, it almost put me to sleep midday, as I waited for my sell stop order to trigger. BIIB could not close above the pre-market high (upper blue line) or the 10 period EMA (pale blue line). I set my sell stop order below the narrow base. My target was the ORL.

Dummy Trade of the Day - VMware, Inc. (Public, NYSE:VMW)

I was watching VMW originally as a potential short, but after carving out a higher low, it started to make a compelling long setup especially on the 5 minute time frame below. The choppy looking 15 minute pattern is actually an ascending triangle on the lower time frame.

A second entry was possible after it held the intra-day pivot and rising 20 ema as support, but I missed it. The first PP test resulted in a wide range red hammer (not low risk), but the second test was a smaller more bullish green hammer and a higher low as well.

RIMM gapped lower on the open after another analyst valuation downgrade. After a fast move lower into S2, it retraced back up to the ORL and started offsetting. It did eventually manage to close above the ORL, but couldn't hang on for long. I shorted a semi-triangle pattern which is easier to see on the 5 minute chart below.

It did not play out as planned, and by mid-afternoon, I was anticipating a stop out, but it eventually went my way. The one caveat I had going into the trade was the distance between price and the down sloping 20 period ema on the 15 minute time frame. Ideally these should be closer because we know that this type of trade will be slow until the morning pivot low is taken out. Allowing for a retest is easier with a tighter 20 ema. The point being that, any attempt to retrace back towards the 20 should not put our initial stop in peril.