Jan 2, 2008

PAY - Short

Decent volume today but it seemed to come in the afternoon. I took a not-so-great entry with PAY (11am bar) and after it went nowhere quickly, I dumped half my shares at breakeven. Price continued to hang out around the ORL on low volume and at the 20.50 area. I don't know... just didn't seem like it was going to do anything and I'd rather get out at breakeven then end up seeing it hit my stop. So, that's it... breakeven on PAY. It ended up breaking down after I exited (don't they all???) and hit my 2R target of 19.92.



7 comments:

Hammer Trader said...

OO:
That happens a lot. Protect capital is my #1 goal and I'm happy to see you exit at BE.

Joe said...

00NR7 - In addition to the 5 ema I use the 10 ema. When that got close it began to sink. I entered on the 16th bar and it worked out nicely.

Dave said...

00: I ended up taking SLM short for BE, got 1.5R out of PAY short and 2R out of AKNS long.

Of course SLM dropped like a rock, right after I got out.

I entered SLM on a break of the 2nd bar and missed an entry of DISH on the 2nd bar.

Hammer Trader said...

PAY looks good on 30 minutes chart, with 5EMA.

bl said...

00nr7,
DISH -2/15 for latte. Should have relaxed and let it run. Some semi's downgraded: lsi intc smtc nsm adi txn=short! sbux cake pay shpgy What a miss and obvious from Briefing news. etf: uso gdx -smh -air -uyg

OONR7 said...

dave, joe: nice trades. I missed APH which would've been nice. Not sure IB had shares to short though. Joe... how do you use the 5 and 10ema together?

Dave said...

007: Thanks.

I too use the 10 ema along with the price weighted moving average.

link:

http://picasaweb.google.com/doctordave/Trades08/photo#5151366983324859474

IMO, they tend to act as support, like the 5 ema. Obviously, a stock that rides the 5 ema with out touching the 10 ema is a stronger and better performing stock, but as you can see from the very trade we both entered... the 10 EMA (pink line) and price weighted moving average (grey line) act as support. Once a stock breaks through the price weighted moving average, I'll stop following it for the day as far as trader-x setups go.

Often times, the stock will gap up, and continue to consolidate while the 5-ema, 10-ema and price weighted moving average converge. At that point I've seen quite a few stocks break out of a narrow range candle. That's basically 3 levels of support.