Aug 16, 2007

VMC, EWH - Short

Not that my guarantee had anything to do with it, but I did find some nice setups today. It always helps when the bottom falls out of the market and I'm short... but I like to think my trades would've gone that way anyway. So, here's a special 2-chart bonus:

VMC (:15 chart)

  • Placed fibs. from 1st bar high to low
  • Price made a nice bearish move during the 8th bar
  • Entered short on break of 9th bar low on increased volume as it broke below the 38.2% fib. level
  • Sold all my shares at the OR low (not risking anything this week)

EWH (:05 chart)
  • Placed fibs. from 2nd bar low to 4th bar high
  • Price bounced around a bit from the 61.8 to the 38.2 fib. level
  • Entered short on a convincing 11:30 down bar as it broke below the 61.8 level on increased volume
  • Sold all shares just above the fib. ext. (again, not risking didly)

9 comments:

bl said...

nr7,
Looks like you are back on the fib track...Last nite I deleated 80% of my layouts!I'm sold on Warrior's Briefing premkt gaps and some others from cnn premkt(etfc schw) and 24/7(mco). Traded aapl cfc kfn ntap etfc...all winners. The most I have ever made day trading was following one stock all day from the Briefing list -nvda- last week...+5.7% on my account. It forces me to focus, focus, focus but since then I have lost it a bit and gone back to the old habit of searching/compiling stocks from scans, etc that do me no good and distract me from making the trade!
It's all in the mind...the coconut! cfc traded 8 pts round trip, mco 9 pts! My plan is to sit and watch 4 charts per page, 1-4 pages and see how they unfold, choose 1-4 and trade 1-4. 5 min with 5/13 ema, fib. And 2 half page 1/5 min or 5/15 charts on pg1 I can scroll the watchlist with. All stocks have 6 patterns they follow when they gap that I've seen and there is opportunity in all of them. I want to trade the pivots.

OONR7 said...

bl... sounds like you're forming you're own system, which is awesome. Everyone needs to find a plan that they can consistently rely on week after week. While I do look into other, different styles of trading, I don't want to distract from what has proven to me to be very successful so far. That's intraday fibs on gapper stocks. Sure, there may be some down days (like the last two), but I really understand 'my system' and have been trading with some pretty strict criteria. I plan to open things up a bit more in the fall with countergap trades. I've done well this summer which I wasn't sure how things would go. I still don't think I'm taking advantage of all the opportunities that come my way and that is my goal. Sometime soon, I'd like to look back at a trading week and say I entered at least 80-90% of the trades that presented themselves. Right now, I'm at around 50-60%.
So... bottomline is that everyone needs to find a system that's successful and run with it. Sounds like you're doing exactly that!!!

Jerry said...

A great way to come back. Champion form at last.

As requested, my blog address is tradestories.blogspot.com

OONR7 said...

thanks Jerry... I hesitated on RS or it would've been a stellar day. I'll probably end up trading tomorrow but only if I see a great setup.
Good luck with the blog.

Jamie said...

Comeback Kid!

Nice work.

OONR7 said...

lol, thanks Jamie. Maybe I should make more guarantees!!!

Jerry said...

I just noticed that EWH is a ETF. I tried to short EWZ, but it wasn't not available at all.

Also, can you please help me on the prophet scan. What do you put on gap scan for:

Open higher/lower by % than Yesterday Close.

Open higher/lower by % than yesterday High/low

OONR7 said...

jerry... here are my scan parameters in prophet:

Gap up
•Exchanges: NYSE AMEX NASDAQ(NM,SC,OTC,BB)
•Last Price is at least 5
•Today's Open Price is at least -3% higher than the Previous High and the Low Price is at least 0.20% higher than the Previous Close
•Average Volume is at least 100,000 shares
•Virtual Volume is at least 15% greater than Average Volume
•Percent Change is more than 2%

Gap down
•Exchanges: NYSE AMEX NASDAQ(NM,SC,OTC,BB)
•Last Price is at least 5
•Today's Open Price is at least -3% lower than the Previous Low and the High Price is at least 0.20% lower than the Previous Close
•Average Volume is at least 100,000 shares
•Virtual Volume is at least 15% greater than Average Volume
•Percent Change is less than -2%

I also pull the top gainers and losers from IB.

Jerry said...

Thank you very much for assistance.