RH Trade on Sep 11, 2019 09:43 from MarcoG: Tradervue User Stock Trades.

Company Description

Sector: Consumer Cyclical
Industry: Specialty Retail

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com. As of February 2, 2019, it operated a total of 83 retail galleries consisting of 20 design galleries, 43 legacy Galleries, 2 RH Modern Galleries, and 6 RH Baby & Child Galleries throughout the United States and Canada; and 15 Waterworks showrooms in the United States and in the United kingdom, as well as operated 39 outlet stores throughout the United States and Canada. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was founded in 1979.

Trade Scenario

RH once again defied the retail gloom and U.S.-China tariffs to post better-than-expected second quarter earnings.
The company, formerly known as Restoration Hardware , beat estimates with a 10% revenue rise to $707 million.

Trade Variables

Symbol : RH
Gap : 2.5%
RVOL : 5.5 (prior day RVOL 3,75. AVG RVOL last 5 Days 2)
pmVOL : >50K
avg Vol: 794K
Float: 15M
Short Float: 72.48
pmPATTERN : Bull Flag above 52 weeks high and touching the all time high level and after fade down to ssr levels(above 10%) below 52 weeks high.
Catalyst : ER Beats + Technical

Technical Levels

Support: 152.50 / 149
Resistance: 163 / 168.50 / 170
Inflection: 159

Trade Plan

A move and consolidation above 159(52 weeks high) could imply a move retesting pm high @ 170sh (all time high). 50% short float could support a move.

Set-up : Up-Trend Continuation after consolidation above pm high
Side : Long
Size : 15
Entry : 159.55
Takes : 161.91 / 163.5 (Add to re-build position)
Exit : 158

Comments

RH had a weird pm pattern. This is not something I use to trade, but in conjunction with ER beats at 10%, 52 weeks high, a wonderful consolidation above such level and all times high just few bugs above gave me overconfidence in selecting the stocks and then trade it.
I am realizing that this is the only setup I will trade actually. I have shorted today ZS as ORB but as usual I don't succeed and I always stop those trade break even or with small losses, for a reason or another is not my setup. Actually I think that the first 15/30 minutes from the open are basically no trend moments. The daily trend is not defined and the moves are depending by variables that are not those that will define the daily trend. For this reason here my approach does not match. I don't like this quick thing, is even not really satisfactory for me to finish the working day in 15 minutes. I like to get in as I did today and being able to held and add when needed to trade the stock eventually through the entire day!! Today the up trend has been confirmed after 15 minutes my entry. I was lucky to get a low price otherwise I could have been stopped out. I need to improve and better handle the consolidation areas! The consolidation and continuation is tho my A+ Quality setup. I have finally today got a nice price. I have set a limit order and held. I have adapted it accordingly to volatility but I talk about few cents. My support level was the 159.52 at 09:37 I have tried to get a fill close to that level avoiding fomo in getting filled. I told my self: If I don't get my price range I don't trade it! I have been stubborn but lucky and right at the end! I have locked 2 takes to grant me a 1.5:1 pnl with the purpose then to built up again a position in any eventual pull back! As soon as I have identified 162 as level of support I have placed my buy limit order and held to get filled. Worked quite well. Once at 2nd take level (163.50) cause price just dropped a bit there I have locked a quarter (perhaps wrongly). Got to the hypothetical 3rd take I have locked one more quarter . I wanted to lock then a piece for every dollar move but the high spread and speed filled me at 165.5 first, then 166.2 and last 167.5. I aimed for the whole dollar.. Once 166 made a support area I have added for 2 times. Again aiming for the whole dollar but I have got really different fills. With my last add I admit I wanted to close the trade. I was no longer able to control my acts and behavior. I was losing focus and awareness. I have never held a position for such long time and the level of focus here is different. I have collected 10 months of full market screen days following stocks and tape but trading has been always reduced to the very first hour of the day for positions that had an avg length of 30 min. Great point of improvement here. Focusing on this setup will imply me to be there longer thus I will day by day, trade by trade work on improving the strength and focus for me to handle hours of trades with less issues and more self control.

What to improve?
Stamina, focus, patience, takes, order feels and order type (perhaps midpoint peg orders would have been better considering the high spread?). I could have added already at the beginning when price started to confirm the 160 has support level. I have to follow only higher time frames after about 45 minutes from the open. That means 10/15 minutes.

What to repeat?
I like my entry. I like the adds (due to the pull back down to new support level. I will basically try to add to any pull back that will touch the old resistance level to make a new support level using the help of ema's on the larger time frame)

02/07/2020 (looking back)
I wrote in this review:"I am realizing that this is the only setup I will trade actually". I was referring to the pull back to pm high. I have done it, but really!! Just the one and only plus yes inflection switch.
Obviously the setup performed differently during a period of almost 5 month by today. I didn't know by the time that the holy grail for trading did not exist. Today I am here reporting after several months of deep analysis of my trades and my self. The adaptation it's the key and that's why trading on a daily basis several setup would give you an edge in adapting faster to market changes. I am still not able to interpretate the market by the pm preparation, I am not able to identify how stocks with catalyst will react for the day. I still do not know. All my checks are still not enough to be 100% sure. I can have all the checks but still not performing on a particular stock and trade. I know that ticker $XXX could trade higher if above daily pivot, pm high, pm low and further levels of s/r but still I am not really able to adapt quick for a trade at the open. I can trade a couple of setups at the open but I did not try many more of those available that I personally see on a daily basis. Why I do not believe in me? Why I arrive to trade with no mental strength? Why I have DAILY to fucking repeat to be a winner! Why I have to awake me every fucking day instead of having a stable winning awareness? I am living all this on a daily basis. If I do not find awareness on that by the open I am not going to make a dime by the day. I have to get into myself each and every trading session. It's a focus that lasts for several minutes but can have different breaks thus affordable. COME ON!!!!!!!!!!!!

05/18/2020:
See NVDA report on 05/18/2020