Thursday, 20 May 2010

Trades 20/May/2010

USG (gap down)

Third candle closing weak on OR breakout. Closed partial for loss after it closed back inside OR then rest came back to our favour and closed at 1R. So overall a minor gain today. Hope you had a good one.

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bl said...

fwiw, there is so much volitilty in the market try a beta WL looking at the open/close, 1-5 min charts:BIDU RIMM SNDK CREE WYNN BUCY JOYG FCX CLF X FFIV NFLX, etc,...1-6 pt moves a day. Compare the 2 styles. 80-90% of the stocks move with the market, why buy gappers that don't continue and by the time you get in the move is over. Traders/machines buy/sell at the open like today Fri. Good luck.

bl said...

The open lasts 15-45's guick but when you see them all going up or down join the crowd. Overnight market gaps have alot of reversals and that's how they play it and make profit

TraderAm said...

So when you say "join the crowd"..what setups are you using? breakouts ? S/R/, Fibs ?

bl said...

I would suggest putting 6-8 beta or large ATR(avg true range)stocks $30-100(all tech-nflx ffiv brcm cree/sndk/vmw/wynn/gmcr/veco/vsea//gmcr/bidu/dndn , or all commodity-clf bucy x fcx schn btu/ rig/wlt/ioc, or combo, or all banks, gamling, market leaders with vol, etc)on a page 1min chart, scroll up with same 6 with 2 min charts, then scroll up 5 min and so on or whatever you like. On a gap down look for the reversal at the open to close the gap 15-30 min, it might retrace a bit at that point, then continue up, or keep going down but beta stocks rally/dn faster than general mkt. I looked at TEVA at 10:30 79.78 as a short. Waste of time as all the gap downs rallied up. It's alot of work with gap strategy and my profit has been negative. Look at todays, yesterdays charts. When you see groups or leaders moving up or down on your screen join in. You don't need fib's much, support and resistance, trend lines work well. WYNN rallied 6 points in less than 3 hrs. Yesterday 4 pts. NDSN was the best nas gap at the open and rallied for 30 min then side ways. The move is done just when you are considering a buy. Look at those 2 charts. In a flat/non volitile market gappers will work. Set it up look at it for a week and if it makes sense.