Jul 10, 2007

PBG - Long, DHI - Short

Today went pretty smooth. I traded both long and short and I am always happy when I can do that AND be profitable on both trades. I don't know... just kinda tells me there are opportunities in any kind of market. I missed SHLD which really bugged me, but it was on my watchlist and it was just a matter of me not seeing the entry in time. I can live with that. Here are my two trades:
 
PBG (5-min)

  • Placed fibs. from first bar low to third bar high
  • Price retraced to the 61.8 level but bounced up off of it
  • Went long off a break of the 10:10 candle high
  • Exited off a break of the 11:20 candle low (closed below the 5ema)


DHI (10-min)
  • Placed fibs. from first bar high to second bar low
  • Price retraced to the 61.8 level but then dropped
  • Went short off a break of the 10:20 candle low after it closed below the 38% fib. level
  • Exited at the fib. ext after price consolidated with a series of NR7 bars. This wasn't a big price mover and I didn't want to risk a .10 jump so I exited all my shares after price hit the fib. ext again

7 comments:

bl said...

oonr7
Nice and clear. Warrior's Briefing prmkt had 26 naz stocks with SHLD PTRY FACE WDFC UNCA and some gap ups. Traded SHLD -9/10" for a loss only to see it go down 3 points! How would you analyze ptry and face? Looking at just candles and 5 ema I see: face -7/10" -5/15" ptry -2/10" risky but doji.

Jamie said...

Hey BL,

FACE was an interesting play because it gapped down into virgin territory and so absolutely no support.

On 3 min. timeframe, I like when price rallies into the downsloping 20 ema and can't close above it, then look for a bearish bar to follow confirming the bearish bias is intact. Could be a way to trade these gappers that rally after the OR.

bl said...

oonr7
Don't have 3period but all the rest of the gear! On the FACE 10" there is a hanging man that closes below the 5ema. That might be the ticket. Have you figured a way to fade the gap? Like DRIV -3/10" shooting star.

bl said...

Jamie,
Sorry. Thought that was oonr7 responding. Your Briefing list goes along way. Look at yesterday's solar power rally!!

Jamie said...

BL,

10 min. FACE draw a line at $12.70 - I see a nice B&B setup.

Briefing gapper list - good for stocks gapping above/below previous day high/low. Tried to short LOCM today on break of ORL but no shares available.

bl said...

Jamie,
Pretty set up just waiting to drop there! Wow

OONR7 said...

I'm gonna have to start charging you guys by the character :)

bl: I saw no potential entry for PTRY. It was on my watchlist but was too far from the 5ema on the 5, 10 and 15-min charts. As for FACE, there were a lot of entries at the ORL... the 11:55 candle on the 5-min was very nice. 11:50 on the 10-min... and, of course, 11:45 on the 15-min. I usually don't buy at either the orl or orh since I use intraday fibs.
As for fading gaps... I've strayed away during the summertime but I really like when stocks that gaps up, drop and stay below the 61.8% level (lower 1/3 of the OR). Same idea for stocks that gap down... but stay in the upper 1/3 of the OR.