Feb 13, 2009

Treadmill trading

Today would've been a pretty satisfying day were it not for 2 mistakes. My first mistake was going long PRU off a break of the 10:45 bar high. The entry wasn't the mistake... it's that it was technically a gap down candidate and I should've been looking to go short, not long. However, it totally looked like a gap up stock and that's why I entered. And it failed. 

I also shorted JPM on a quasi 'hangin' out' setup but I entered on an inverted hammer (12pm bar low) after it followed a shooting star-type candle. So, still a 'hangin' out' setup but I prefer to enter on a candle that closes below its open. Long story short... stopped out.
The one trade I should've only had today was RIMM. It was a keeper. I have to say there's nothing like a stock that trades perfectly. I've been fortunate to have that happen two days in a row with KO yesterday as well.
Anyway, shorted RIMM off a break of the 10:40 bar low on a 'FU' style setup. Exited a portion at 1R and the rest just above the fib. ext. A no-worry trade. I'll take it. 
In the end... it was an absolute BE day. Very similar to my week. It was good exercise.


Anonymous said...

how many excercise week ahead, people wonder.

JF David said...

Volume pattern of RIMM and PRU are important here.

Higher volume on the opening candles for RIMM than for the close yesterday.

PRU have weak volume on the opening candles. It’s more dangerous to chase higher prices.

Nice setup for RIMM, weak bounce and narrow consolidation just upside the ORL and huge volume, big players are running for the exits.

JPM long orderly downtrend in the yesterday range, I suffer a loss with MS yesterday on a similar pattern.

Tom T. said...

I cannot recall such a tough week for trading gaps. Not much there this week - damn stimulus bill - I know longer care what is in it - as a trader I want the politics out of the market already.

OONR7 said...

anon: afraid so.

JF: yeah, PRU was a mistake.

Tom T: I agree. This market is just so reactionary right now. If you had an arsenal of setups to choose from there was money to be made. Just a little more unconventional.