ACAS,BAC,BBD,BCS,BPO,CAL,CNQ,DNR,DRYS,GE,HK,IBN,INFY,
LDG,MER,MS,PBR,PWE,RIMM,SUN,TSO,UBS,XTO
A big gap down at start today. Sometimes this can mean that trades are move difficult to find since the large move has already happened in the first 30 mins or so. However the market weakened further later, so there were some opportunities.
BCS (gap down)
After gap down we retrace up towards the ema where we find resistance. The 6th candle although green has a longish wick and closes below the whole number. The 7th is bearish and closes below the ema and closes weak itself. This is our short trigger.
Entry: 22.55 Stop: 23.05
Fib Ext: 20.62
1R=22.05 2R=21.55 3R=21.05
The price falls nicely after entry as it follows the ema down. We take partial at 1R since we are near the OR and also the whole number. The rest is left to run and is closed at end of day for a $1 gain. Nice trender this one.
SUN (gap down)
The first two candles are bearish as we fall strongly. We then get the retracement we are looking for as we come back up to the ema with a NR3 candle which also comes off the whole number. This is our short trigger.
Entry: 41.49 Stop: 42.14
Fib Ext: 39.85
1R=40.84 2R=40.19 3R=39.54
After entry we fall nicely with the ema as we reach and pass 1R. The $40 level was going to be a likely factor in this trade, so we take partial at the $1 gain and leave the rest to run. This remainder was stopped out at breakeven on the next retracement. Shame really as we look at the fall later in the day. That's the way it goes sometimes. In fact if you watch the market all day then there was another entry on the 15th candle which would have yielded nice profits. But I don't watch the market at that time.
Two trades, both profitable and in fact both produced $1 gains on partials. So overall quite pleased today. The market was pretty much downhill all day, so I'd imagine a lot of reader traders made a lot more than me :-).
Anyway, tomorrow could be tricky though, as it can get choppy after a big mover day.
6 comments:
TR: SUN - your trigger bar was $.41 away from EMA. What led you to trade such an extended srtock, besides the NR3 candle? Ralph
ralph.
Yes ok it was 41c away, so maybe a riskier than normal. But look at the range of how much the stock moves in first two bars. ($3 and $2). So 41c was reasonable in my view. I didn't work out that it was 41c by the way, I just eyeballed the chart and the pullback NR3 bar looked good to me.
The 4th bar rejected the whole number $44.00. The 5th trigger bar also rejected the number. The market was down over 250 points. These were the other factors that made it seem like a fair short IMO.
If we want to be very specific about ema distances then I wouldn't argue with that. In which case the 15th candle would be a better choice. Still would have had to handle a retracement on the 16th though.
SUN trade... what a beauty!
ralph, didnt read you post, just looked ta the chart. no slight intended.
;)
Nice trading... I agree that today will be very tricky. I am going to be just as cautious as I was on Monday.
TR: thanks. Make sense. ralph
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