Aug 28, 2007

X - Short

I remember a time when I first started trading that I was actually afraid to short a stock. I just really didn't know what I was doing.
Seems like that's all I do lately (thankfully). Here's my trade in X (would've been a better day if SAFM wasn't such a pain in my ass):

  • Placed fibs. from first bar high to second bar low
  • Price kept bouncing off the 50% level and left 3 very bearish upper tails on bars 2-4
  • Entered short on break of 6th bar low on increased volume and a nice down bar
  • Exited at the fib. ext. (notice how the intraday fib. ext provided such a nice support area)

11 comments:

Jerry said...

I felt the same about short, too.

Today was my day rest and I wish I did't.

greytrader said...

Looks like a big player was buying the dips in SAFM.

Made lunch money in MXIM and missed WINN on 15' because of distance to 5MA. Nice potential entry on the 5', hope somebody got in.

greytrader said...

oonr7,

X was a 1.5% gapper, how did you get down to it making your list ?

Jamie said...

OONR7,

Just curious, did you use the new exit plan on this one?

This is how I wanted my AFFX trade to play out, a lower low into the close, but I got an equal low.

OONR7 said...

gt: this must've come from my IB scan. I run a the top % gainers and losers in the morning.

Jamie: no, I did not follow the plan and decided to cash out at the fib. ext. I feel okay with that knowing that it was at least at the fib. ext. The way I see it, if a stock gets to the fib. ext. and I cash out... I can live with it. I probably should partialed out to see if it would continue to slid. Just one of the many decisions we make during the day.

OONR7 said...

jamie: AFFX looks a lot like my SAFM play. Cup and handle, yes?

Jamie said...

OONR7,

Yes an inverted C&H for AFFX and a reg C&H for SAFM. Two stocks I will have on my watchlist for tomorrow!

Anonymous said...

thanks for posting... i was positioning swings in QID & FXY. i notice that quite frequently the LOD for first 2 bard on a gap down & HOD of first two bars gap up provide re-entry opportunities. on days when we trend in last 60-90 minutes, im going to look for those kind of re-entry set-ups.

GGGQall

bl said...

oonr7
How would have traded WINN? Noticed it retraced 38 2nd 5min yesterday close--OR close. 10:05 10:25 11:15 breaks. 5/15" min bar banged into the 5ema and went down. Might gave been a delayed 5ema bounce but notice that on gap up rallies too. LFC 10:40 hammer?
AAPL 10:45 TRA 10:35 or X style. Love the slide off the open like JOYG, BIDU(and yesterday with all the sino stocks). Might be interesting to note the stocks that don't gap while most have gapped down..they might follow the pack with great enthusiasm!

Anonymous said...

edit... "--OR low."

OONR7 said...

bl... I actually looked at WINN and it was a really nice X-style play at the OR low. I was bummed I passed on it. On the 5-min chart, there was a nice inside NR7 that formed during the 10:20 bar and price was consolidating at that point at the OR low. Then, then 10:25 bar was also narrow, with an upper tail and increased volume (although it didn't take out the OR low). That was an ideal entry bar.
If I see this setup again, I'll definitely take it.