Monday, 10 November 2008

Trades 10/Nov/2008

Watchlist:
ASML,BBY,CELG,CTSH,DTV,ENER,FDRY,FWLT,INFY,
JOYG,PBCT,SCHW,SPLS,TEVA,XNPT

CELG (gap up)
Although we gapped up, the initial price action was weak compared to market. The 4th is weak wrb red which closes below the ema. We enter a short (gap fade) on the 6th bar as the market turns down further and the whole number at $61 is broken.

Entry: 60.82 Stop: 61.28
1R=60.35 2R=59.88 3R=59.41
However, things don't go accordingly to plan and we are stopped out for a loss.

SCHW (gap up)
Although we gapped up, we can't hold previous day's high on the first candle. The initial price action is also weak compared to market. The 4th is weak red which closes below the ema. We enter a short (gap fade) on the 5th bar as the market turns down further.
Entry: 18.48 Stop: 18.69
1R=18.27 2R=18.06 3R=17.85
The price trends down nicely with the ema as we reach 1R and move stop to breakeven. We take partial at 2R which is also near whole number and leave rest to run. This is closed at end of day for around 7R.

4 comments:

Anonymous said...

Traderam,

The entry point in SCHW is after 4 consecutive red bars. Does that affect your trade? I saw a similar setup on another stock but was reluctant to take it. I thought there might be some retracement soon and did not enter. :(

OONR7 said...

great trade with schw. You've been catching some nice moves lately.

TraderAm said...

oonr7.
Thanks.

TraderAm said...

anon.

Very good question.

It is very tempting to think there might be a retracement. Many times I've thought that and the stock just keeps going. In this case I was using market direction more as a trigger and since that was in my favour, there was a higher chance it would continue falling.

Having said all that, there is nothing wrong with waiting. Candles 8 and 9 would have given good entries also on a retracement?