BMY Trade on Oct 22, 2019 09:34 from MarcoG: Tradervue User Stock Trades.

Consolidation & Pull-back play above pm high on Fresh Key News!

Requirements:

Gap : >2.5%
RVOL : >1.5
pmVOL : >50 K
avg Vol: >500 K
Vol @ Day : >500 K
Float: >20 M
Short Float: Possibly >40%
Catalyst : Solid Fresh news / ER beats

Overall Picture

SPY traded horizontally trending higher in pm. Touched the 300 level once again in yesterday's trading session. Showing some strength here, let's see if we are able to hold the 300 for a further up move. In case of a fade we might see a retest of pm lows and further down to yesterday's lows, just 1$ below and even much more..

Today's Watchlist

Today I had on the watchlist: PG,UTX and BMY, keeping an eye on UPS, BIIB, HOG and STMP.

PG: Procter & Gamble Co. stock jumped 4.3% in Tuesday premarket trading after the consumer products company reported fiscal first-quarter earnings and sales that beat expectations. Net income totaled $3.59 billion, or $1.36 per share, up from $3.20 billion, or $1.22
PG was my favorite stock to long today. I was neutral bias on the stock but with all the names in play today I wanted to prioritize a long on a gap up and a short on a gap down. Beautiful pm pattern. Touching 52WHigh and fading at 124 support. The stock faded the support retesting it again to open just at the breakdown of 124. It was a clear gap fade opportunity entering short at 09:36 and 09:38 @ 124. I have kept it aside due to my interest in BMY.

UTX: United Technologies Corp. shares rose 1.9% in premarket trade Tuesday, after the aerospace and industrial company beat earnings estimates for the third quarter. The company said it had net income of $1.148 billion, or $1.33 a share, in the quarter, down from $1.238 billion, or $1.54 a share, in the year-earlier period.
UTX was in play only if it would have caught some bids but it occurred only after 12 o'clock and I didn't feel like trade at that moment of the day. I known I should start trading the setups rather then the time of the day. I have to adapt the trade to the time of the day accordingly to volatility, trend continuation and liquidity. This is a practice that I will slowly insert in my trading activity.

Play

BMY

Company Description

Sector: Healthcare
Industry: Drug Manufacturers - Major

Bristol-Myers Squibb Company discovers, develops, licenses, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. The company offers drugs in oncology, immunoscience, cardiovascular, and fibrotic diseases.

Trade Scenario

BMY today announced that CheckMate -9LA, a pivotal Phase 3 trial evaluating Opdivo (nivolumab) plus low-dose Yervoy (ipilimumab) given concomitantly with two cycles of chemotherapy for the first-line treatment of advanced non-small cell lung cancer (NSCLC), met its primary endpoint of superior overall survival (OS) at a pre-specified interim analysis.
Good news today with BMY! Those are keywords news that you don't want to miss. It has been imo the best stock in my watchlist to trade at the open. The trade opportunity has been clear and smooth!

Trade Variables

Symbol : BMY
Gap : 5%
RVOL : 2.60 (> 1 last 2 days)
pmVOL : >700 K
avg Vol: 10 M
Vol @ Day : 27 M
Float: 1.63 B
Short Float: 9.15%
Institutional Ownership : 75%
avg ATR : 0.98
ATR @ Day: 1.15
pmPATTERN : Bull Flag and consolidation. Breakup and consolidation above to fade and test the 56.10 previous bull flag high. Sold found a consolidation on 55.50 to open @ 56.03
Catalyst : Fresh Keyword News

Technical Levels

Support: 55.50 55 53.20
Resistance: 56.10 56.24 57.53(52Wh) 59.30 61.50 63.46
Inflection: 56.08

Trade Plan

The trading variables and the news supporting were aligned perfectly for a long trade. A break of pm high and a further pullback to that level could give a good entry area.

Set-up : Up-Trend Continuation on consolidation above pm high. Entering at the pullback
Side : Long
Size : 130 + 130
Entry : 56.27 (missed entry, price got to 56.32 so no entry there). 56.32 (missed entry, price got to 56.40)

Takes :
Exit : 56

Trade Analysis:

I have got my interest on BMY due to the nice news and the smooth pm action. PM volumes were supporting the interest of traders. Though this stock has a big float thus does not move so easily.

Intuit:

Chart Pattern in creation above pm high with rejection of the 56.5$ level. Price nicely got to pm high giving me the opportunity to try to find an entry. I have set down my order and held for the price to fill it. It never happened. And here is my mistake! Already in the intuition.

Tape reading:

I did not focus on the tape cause I could not enter the trade. Though for as much much as BMY could be a big float stock, the tape gave some good hints on certain levels. the 56.75/80 area gave good signal for a possible pullback. Pity I didn't spot the same once the price failed half dollar touching VWAP just within 1 red candle. The drop was quite extended but actually enough for me to stay away to find an entry at VWAP.

Internalization:

I was into it and have liked the response to the pattern and order entry. Hearth rate stable and everything under my view.

Orders:

I think this is the main point of my trade today. And I guess also of many already missed entry and many more that will come if I don't change something here! My issue is in the fact that I don't wanna enter that far by critical levels. This is leading me to find some great entries but also to miss many others. Today happened for 5 cents. I have to set my orders considering a wider range for my entries. This will cost some cents that will be covered by the appropriate sizing. Just 10 cents above pm high today would have grant me an entry. I will improve on this practice and day by day I will make considerations in relation to this topic for me to have a big view on my filled/missed entries!

Comments:

BMY did not disappoint the expectations of traders trading a fresh news and volumes. In a day full of names mostly ER, a name like that could pass under the attention. What attracted me at the very beginning was the gap and the 52W level touched in pm. Only after that when got to look for the reason of such gap I have realized that there was a good supporting catalyst too. Meets its primary endpoint is one of the keywords traders use to look for when spotting an interesting stock with news. I think I should remark this in my playbook to have perhaps a collection of more stocks traded based on Key News!

BMY has a big float thus I was scared that the stock would have lost volatility by the open but it didn't occur trading above an avg of 100k a min vol up to 10 o'clock.

I have felt a bit down to have again missed an opportunity! But by the end of the session after my Yoga session I have found back a good mood and cheered up! I am arriving also to the conclusion that I have to trade trough the entire day. I will size my A+ and keep tiny my aspiring A+ setups. If I start now doing that by the end of the year I might end with some backtested strategies, potentially profitable or not, it worth the try.
One example is my trade on:

Here I have shorted at pull back to prior point of control. Second part of the day. Price was already significant intraday MA's and confirmed the trend switch. I am following it since a while now and it occurs sooo often. Considering that I have now sized up for my main strategy I can perhaps start to trade those other setups as I have said with a tiny size.

What I did not like about the trade:
I didn't like the fact of sticking too tight to my main entry levels. I did not like that I didn't think about it even the second time I have placed my entry order. I did not like the fact of giving too much consideration to a single candle drop. That would have been a point to add some shares to my initial position.

What I have liked:
I liked that I have set and respected my plan (but lol was wrong entries). Followed accordingly with no change of the plan. For sure I did not shake, or felt fearful, nervous or what so ever. I was fine.

A good trade at least on the planning sheet :D