TXN Trade on Jul 24, 2019 09:49 from MarcoG: Tradervue User Stock Trades.

Consolidation Squeeze Play above pm high! All Time High Spike on ER beats!!

Requirements:

RVOL: Possibly >1.5
pmVOL: Possibly >50 K
avg Vol: > 1M
Vol @ Day : > 1 M
Gap: If possible but not strictly needed
Long Term Chart : Possible Pocket, trend already defined and strength.
Float: > 20 M
Short Float: Possibly >40%
Institutional Ownership : Possibly > 100%
History of Gap Follower: Neutral
History of former runner: Possibly YES
Major ETF movement and strength: Possibly Trending with strength

Company Description

Sector: Technology
Industry: Semiconductors

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in amplifier, data converter, interface product, motor drive, clock, and sensing product end-markets; and integrated analog and standard products, which are primarily for sale into personal electronics, industrial, and automotive markets. The Embedded Processing segment offers connected micro controllers, such as micro controllers, micro controllers with integrated wireless capabilities, and stand-alone wireless connectivity solutions that are used in electronic equipment to sense, connect, log, and transfer data; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, principally industrial and automotive. The company also provides DLP products, primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. Texas Instruments Incorporated markets and sells its semiconductor products through direct sales and distributors, as well as online. The company was founded in 1930.

Trade Scenario

TXN with gap up in pm due to ER beats got close to test the all time high level of resistance.

Trade Variables

Symbol : TXN
Gap : 5%
RVOL : 6.82
pmVOL : >100K
avg VOL: 4.5M
Float: 935.36M
Short Float: 2.01%
pmPATTERN : Bull Flag and sideways consolidation, opening at bottom.
Catalyst : ER Beats

Technical Levels

Support: 126.11 / 120.6
Resistance: None, All Time High
Inflection: 126.50

Trade Plan

Long above pm high after consolidation

Set-up : Up-Trend Continuation
Side : Long
Size : 60
Entry : 128.89 (add at break of the half dollar at 129.54)
Takes : 129.27 / 129.54
Exit : 128.59

Comments:

Busy day today, many names on the watch. The typical day in which I do the mistake to follow too many and lose opportunities.. But not this time :D
I have kept only 3 names on close watch, $UPS, $TXN and $IRBT. Then I had $SNAP, $SGEN, $CAT, $TUP and $TER.
The earnings release didn't disappoint on TXN and the consolidation pre-market above all time high gave me confidence to long it in case breaking pm high. Pity that the stock didn't continue.
I have traded with a tiny stop and with the aim to add back once got 2 targets, that is the reason why I have given my self just about 20$ risky. Got 2 targets I have waited for the pull back and added at the cross of the half dollar once price tried to break through. It didn't occur thus we got no continuation. Happy about the overall trade management and overall mental state. I like also the entry just 3 cents above pm high! One and done thus I din't trade again!
Points of improvement over here? I think I have done all I was supposed to do! Self appreciation once we do the right thing and depreciation when we commit errors!
This trade as many others is dedicated to my dad(immense strength that drives me every day)!

07/24/2019 (after a while)
I realize only now that I have done a mistake in setting down my profit takers.
They should have been 129.19 / 129.39 / 129.69! I am watching back the recording of my session and I have just set down the wrong targets! I think the reason is cause I have made a too approximate calculation of my stop and targets! Perhaps I was too anxious and lost focus here!
Indeed I couldn't understand how I have got only a 1.2R when with 2 takes I should get 1.5R
Another consideration is on the fact that perhaps when in this kind of scenario such as all time high or all time low I have to aim for a scalping approach loading up more size. I say that cause is happening too often now that at those levels the stock desn't really make a big move, while it will spike and go back consolidating on PM highs, VWAP or just fade lower! I will add a TAG as per today to track those trades and be sure to apply what just wrote in the playbook!
One more thing, for this kind of scenario perhaps an order at VWAP cross would be really beneficial! We have the overall condition that would support the move!!