CDW Trade on Sep 18, 2019 09:58 from MarcoG: Tradervue User Stock Trades.

Consolidation Squeeze play above pm high!! All Time High Spike on Up-Grade!!

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: Information Technology Services

CDW Corporation provides integrated information technology (IT) solutions to business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. It operates through three segments: Corporate, Small Business, and Public. The company offers discrete hardware and software products, as well as integrated IT solutions, including mobility, security, data center optimization, cloud computing, virtualization, and collaboration. Its hardware products comprise notebooks/mobile devices, network communications, desktop computers, video monitors, enterprise and data storage products, printers, and servers; and software products include application suites, security, virtualization, operating systems, and network management. The company also provides warranties, managed services, and consulting design and implementation services.

Trade Scenario

CDW shares were indicated sharply higher in pre-market trading Wednesday after the IT solutions group was tabbed to join the S&P 500 next week. CDW will replace Total System Services Inc. (TSS - Get Report) in the benchmark, S&P Dow Jones said, with the change effective at the start of trading on Monday September 23. CDW, which earns more than half its revenues from small-to-medium-sized businesses, had net sales of $4.63 billion over the three months ending in June, its fiscal second quarter, and earned $196.6 million in net income.

Trade Variables

Symbol : CDW
Gap : 6.38%
RVOL : Around 30 when I have opened the trade and 8.40 by the end of the trading session
pmVOL : >50K (by the open we got a nice avg of 50K vol per minute)
avg Vol: 880K
Float: 143M
Short Float: 1.66% (perhaps this justifies the lack of action)
pmPATTERN : Bull Flag
Catalyst : Fresh News

Technical Levels

Support: 121 / 120 / 117
Resistance: 121.50 (all times high)
Inflection: 120

Trade Plan

The stock gained 6.38% in pm session gaping up! A consolidation above PM high could imply a move above all times high.

Set-up : Up-Trend Continuation, 15min consolidation
Side : Long
Size : 50
Entry : 121.680
Takes :
Exit :121.38

Comments

First thing to underline is the fact that I have missed my entry on FDX 2 times for just 3 cents. I have got some hesitation in placing the order and when finally I have set it down it was too late. I post here my orders on FDX:

Since my order the high has been 151.60.. Just 3 cents below..
Good lesson for me today, it would have been an home run trade :( !!

I have then traded $CDW cause I am a perma-bull and cause I liked the supporting news and the move above pm high. I have indeed set an order on the first level of support at 121.65 (pm high)but I should have considered the fact that the accumulation area was at 121 thus any order above should have imply a move further down. I admit that in pm preparation I have noticed that the short percentage of float was just around 1.5% I had some doubts that the stock would have moved!! I have stick to my approach and plan and payed the price of some hesitation on $FDX. $CDW would not have been traded otherwise if I could have got a fill on $FDX. I have to say that I was quite disappointed about the day, I still need time to properly edge and sometimes it's tough to admit it! I am thought positive for the future, if I am able to collect such small red days while the green are big I won't need such accuracy for my practice! Still I would have loved to trade $FDX today. Frustration is kicking in. That's why I have bought some beers tonight just to let it go and give me some self compassion! I would really love to hear what you guys here on Tradervue think about my approach an my method! Thx in advance!

22/09/19
Stupid mistake not seeing the 121 level..