Shared by
shefmcoy
ATR: 1.26
Short Float: 11.19%
Avg Vol: 83m
RVOl: 2.37
Big Picture
SPY
Yesterdays trading was range bound consolidation between the 285 and 286. Evidently digesting the 282 lvl breakout that we started Sunday. Market looks very strong here but keeping in mind the major resistance levels overhead and the possibility that where are over-extended. I am going to wait for long positions until after I see strength support behind a heavy sell test. Ideally, I would like to see a 286 test before thinking of going long. Otherwise I would be biased to taking a short down into these support levels as we are moving up into a seller’s area without a major pullback.
Intraday Fundamentals
This sector has been hot and pretty much all the semi-conductors are showing signs of follow through on breakout which has been forming due to sector growth optimism. AMD received a price target upgrade to 33 from Nomura this morning.
Long-term Technicals
Stock testing the March highs of 28 in pre-market. Looking a bit overextended in this v-shape reversal but price action is strong and sector/market is very bullish. Short term support 27.50 to 27
Intraday Technicals
Immediately at the open the stock performed a false break to the downside where it dropped slightly below pre-market support of 28 before squeezing right back up with conviction as it broke through premarket highs and the 28 mark.
Reading the Tape
I got in this stock short as i saw the bids getting hit on the T&S and the offer stepping down on the LVL2. I did not watch very long before my entry and this was obviously a bad decision. The stock was strong and just because a few sales hit the BIDs while we are at the highs of a recent breakout does not mean that it is a short.
Managing the Trade
Only thing that i did right was take small share size. Other than that there was no management. This was a disaster.
Trade Review
Seeing the move extended to the upside during pre-market, along with strength in the rest of the sector, the stock was screaming a long. But I was expecting a pullback as we were a bit overextended. My pullback to buy came at the 28.25 support level. But instead I shorted at this level, thinking that I had missed the move to the upside, I have to take a step back and breath. I need more than just a sell on the bid printed on the tape to take a position. I should have realized that we were breaking out and holding support over the 28 level after we had just tried to go lower and got bought up.
Report Card
Did you calculate proper share size and technical stop loss level?
no
Did you have patients and fight for the best price using the tape?
no
Did you trade with the overall trend of the stock/market? If not the did you take profits early to reduce risk accordingly?no
F-
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2019-04-03 09:35:03 | AMD | sell | $28.380 | short |
| 2019-04-03 09:35:44 | AMD | sell | $28.340 | short |
| 2019-04-03 09:36:28 | AMD | sell | $28.350 | short |
| 2019-04-03 09:37:07 | AMD | buy | $28.530 | 0 |
Comments
shefmcoy
Thanks for the comment man yeah! So what are your parameters for an Opening Drive Long Play? I think my biggest problem is just patience and self control right now. I set all of these levels out premarket but once the bell rings it is like i become blind to them. I will often end up having a losing day and upon going back to look at the notes and levels i had written down premarket, i realize that if i would have just been patient my thesis would have payed me. Like today for example. The market ended up turning into a great short if i would have been patient and waited for weakness that came after lunch. I had to stop trading just before eleven today so i missed it. But knowing me i probably would have tried to buy the pullback on FB or something. LOL
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Man this was a TOUGH one to call. I traded this in the pre-market and left it alone at the open because I had no idea what was going to happen so I went to look for greener pastures. It was setting up for my Opening Drive Long play, so I went long. It moved a bit in my favor but then broke the trend eliminating it from my opening drive parameters so I hit out. Then I went short for a pullback also in the pre-market, but I wasn't getting the follow through due to the heavy buying and I was like "You know what, I'm done with this, I'll look at it after the open." It sure as hell wasn't set up for my Opening Drive Short play either so I left it alone. Never went back to it since I found another stock to trade. Point is, don't beat yourself up on this, mixed signals man. Even the SPY was dubious to me. Strong in the pre-market, and yes I agree with you moving into resistance levels, but it never got up to those it just completely sold off on the open. This is the first time I'm seeing the chart since then and now I'm like "Man I should have looked back at it", that move the upside is really clean. Definitely easier than what I was trading.