Big Picture
- Trump delaying China tariffs
- ECB (European Central Bank) cut rate to -0.5%
- ECB launched QE and will buy $20 billion euros worth of assets each month
- Holding above 282-294 range at 301
Markets Intraday
- PM: trading tightly above 301 making a pennant
- Morning: Traded up to ATH then got rejected on trade war news, still trending back to ATH’s
- Afternoon: Made a new high of 302.46
- End of day: Sold off into the close
- Strongest markets were finance and real estate
Technical Analysis – Long Term
- No LT trend, consolidation between 35 and 60
Technical Analysis – Intraday
- Earnings released 5 days ago:
o Revenue increased 41% year-over-year
o Subscription revenue increased 39% year-over-year
o Professional services and other revenue increased 72% year-over-year
o Billings increased 47% year-over-year
- Opened strong and blew past previous days high
- Started intraday pullback at 10:20am
Original Plan
DOCU broke down below VWAP and bounced twice from 62.5. Shortly after it had a “build-up” 62.85 and 63 before breaking out above 63. My plan after seeing this was to long it on the pullback to 63 (63 was a technical level from yesterdays afternoon session).
Execution Notes
I got filled at 63.01 and set my stop at 62.80 – 5 cents below the “build-up” consolidation. I was watching the tape and it was having a hard time staying above 63. It failed and broke down, it leaked below the “build-up” consolidation and I got stopped out at 62.82.
Review
Although this trade didn’t turn out, the pattern that preceded it was bullish; it bounced from 62.5 (a level from yesterday) and it consolidated tightly against 63 before breaking out above it. I traded my plan but it simply didn’t work out.
Grade Questions
Did I follow my plan? (yes/no/with mods): Yes
Which modifications?: none
What justified the modifications?: N/a
Did you hold a core position until you noticed a reason to sell?: Yes
Were your executions goods? Yes
Grade: A
(1=D, 2=C, 3=B, 4=A)
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-09-12 13:02:04 | DOCU | buy | $63.010 | long |
2019-09-12 13:13:50 | DOCU | sell | $62.820 | 0 |
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