ADBE Trade on Dec 13, 2019 09:36 from MarcoG: Tradervue User Stock Trades.

Pull-back play above pm high on ER Beats!

Consolidation occurred after my entry

Requirements:

Gap : >2.5%
RVOL : >1.5
pmVOL : >50 K
avg Vol: > 1M
Vol @ Day : >500 K
Long Term Chart : Possible Pocket or trend already defined.
Float: >20 M
Short Float: Possibly >40%
Institutional Ownership : Possibly > 100%
History of Gap Follower: Neutral
History of former runner: YES
Major ETF movement and strength: Trending
Catalyst : ER beats

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Overall Picture

SPY got to cross up all time high @ 318 in today's pm session. Rejected the new marked high price got to lose all what gained in pm consolidating below yesterday's close. Got to open at top of consolidation area. Overall scenario is quite strong and supportive.

Today's Watchlist

Today I had on the wachtlist: ADBE as fresh catalyst name, AMD and MU as technical trades supported by an eventual strength brought by the SPY

AMD: After the beautiful performance in yesterday's session and the continuation in pm AMD was just going to open above 52 Weeks High but just faded it following SPY few minutes prior the open. The plan to long it faded with the price.

MU: Beautiful action in yesterday's trading session MU was set to trade above all time high level just broke in pm and rejected in yesterday's session. Faded with the SY at the open I left it aside but got back to my attention at 10:05 marking a beautiful pattern at pm high. I wanted to enter by I was already trading ADBE. I need bigger balls to enter 2 names at the same time. But definitely is something I should to take in consideration, how to manage the situation when in 2 different trades!

Play

ADBE

Company Description

Sector: Technology
Industry: Software-Infrastructure

Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content..

Trade Scenario

**The San Jose, Calif.-based company earned an adjusted $2.29 a share on sales of $2.99 billion in the quarter ended Nov. 29. On a year-over-year basis, Adobe earnings jumped 25% while sales rose 21%. Analysts expected Adobe earnings of $2.26 a share on sales of $2.976 billion, according to Zacks Investment Research.
It was Adobe's second straight quarter of accelerating earnings growth.

Trade Variables

Symbol: ADBE
Gap: pop to 3.89 to open with a 2.42% gap
RVOL: around 7 by the time of the trade
pmVOL: 50 K by the time I made my prep but 1.5 M then by the open!
avg Vol: 2.55 M
Vol @ Day: > 2.5 M by the time of the trade
Float: 484 M
Short Float: 1.61%
Institutional Ownership: 88.30%
avg ATR: 5.7
History of former runner: Yes
History of Gap Follower: Yes
Long Term Chart: The stock is just going to open above All Time High after have broken and held the level in pm.
Major ETF movement and strength: XLK the strongest within the major ETF's got to follow SPY action in pm holding just below yesterday's close.
pmPATTERN: Nice Bull Flag. Made a good wedge at the pennant marked a higher low hodling the bottom of the wedge just prior the open.
Catalyst: ER Beats

Technical Levels

Support:

S1 313.11(ATH)
S2 312.25
S3 311.03
S4 310.34
S5 308.77

Resistance:

R1 315.60
R2 317.54

Inflection: 317.54

Trade Plan

ADBE is the only stock in my list to have a proper catalyst, I was really happy to see this morning that it held nicely the buying impulse. That gave me a nice long bias on it. The fact of breaking All Time High and open above was a good sign of an eventual continuation above pm high

Set-up: Up-Trend Continuation entering at pull back to inflection.
Side: Long
Size: 30 / 30 / 30 (Entered with 30 shares starter position, I did not like the action since 09:43, not marking a clear high, I did not had when price pulled back offering a good adding point. I have added after to rebuild my position.
Entry: 317.600
Takes: 320.69 / 322.75 (price never got there)
Exit: 315.94

Trade Overview:

Analysis:

1) Price at the open got to test inflection and reject it.
2) Found support @ 314sh didn't look back and found is pop back to inflection and above.
3) at pullback I have entered the trade. Price nicely formed a hammer candle stick confirming that the rejection of the high was not that strong. I have gained hope that the action would have continued higher.
4) Price got to retest pullback area but nicely holding the 317. At that point my exit would have been below 316
5) Action went sideways basically up to 09:45 minute in which finally a pop occurred. At that moment I say to my self (watching back my recording) I do not like the action, I do not see that strength that could lead the stock to make a 2 ATR move on the day. Each 5 min candle had a top tail, each op was basically sold and SPY was not really helping.
6) At 09:49 price got to test again for the 3rd time the 319sh bear point of control but still loses ground to find support at 09:49
7) 09:56 price comes back to my entry price but I have stayed in cause still the up trend was valid.
8) After the drop at 09:56 price definitely found its way o fill my first taker @ 320.69 (lowered by few cents from the original taker)
9) Filled my first take price found definitely a bear point of control @ 321. The rejection costed 2 points.
10) Held tight again 321 was sold for the second time. In the mean time SPY started to bleed.
11) 10:34 price sells again the 321. There I have started to realize that the move would never occur

Tape reading:

5) 09:44:41 50K order @ 317.79 gave some strength for the stock to move upwards.
6) 09:49:02 15K order @ 318.13 gave the supporte needed to keep trading higher.
7) 09:53 35.8K order @318.75/.35 definitely pulls back the stock to my entry price.
I haven't been able to get any other signals by the tape.

Orders:

I have committed no mistakes today. I had to adapt my taker to the fact that 321 controlled and definitely blocked the price from going higher. ADBE started to be weakened by the SPY, I could follow the action going almost in parallel.

Intuit:

I have spot the only stock in my watchlist that ended up providing some action today! I have immediately got fully focused on it as soon as the action got in my favor trading above pm high. I have set my order and held for 03:45 hours today. I have executed my order staying focused and on the spot.

Internalization:

I have realized that an opportunity was presented to me. I have cross checked my entry a couple of time before entering, all the variables where on my favor even if the action presented an atypical formation, but still respecting higher lows and higher highs by the time of my entry. The stock took so long to provide a move and in the end gave me only 1 my first target. I have held until SPY was above yesterday's close but as soon as SPY got below yesterday's close I have started to unwind my position. I have then added back only afterwards when SPY confirmed the pull back setting at yesterday's close area.

Comments:

ADBE was the only stock with a proper catalyst supporting and it ended up being the stock I have traded, catalyst supporting makes always the difference. Today technical trades have been quite disappointing considering how SPY ended to trade thus has been really good to have ADBE and being able to take a trade out of it. I have given the stock around 2$ stop cause the ATR of 5.7 plus the levels around price action imposed me to stay a bit large. It has been not needed in the end but I am satisfied to have adapted my share size accordingly. I didn't feel to add any just after my entry when price got to pull back to my entry price cause no real higher high was market by that time. I needed to respect what I see and realize. Stayed in the trade for almost 4 hours holding super tight hoping that SPY would have found strength in the end it didn't occur.

What I did not like about the trade:
I didn't like that perhaps I should have switched earlier to the 5/10/15 min chart. I have interpreted the chart based on the 1 min up to almost 10 o'clock. Instead a wider view would have supported me in adding some more when price got back to my entry. It has been a wonderful gift I should have taken.

What I have liked:
I have liked that I have adapted and interpreted the action in a proper way. I had only 1 taker and price never got to fill my second, still I have been able to make 1.5 pnl on the trade trading supports and resistance and take/add accordingly!

Additional Comments if any: Today I have got a good view on the stock, even if delayed I have switched time frame and traded only based on higher time frames, leaving aside the 1 min after the first 30 minutes market opened (still too late though). I have got a good lesson for me today. I didn't sell lower then a certain price what I have got. In real life is what basically we aim to do in any transaction we will procede. Buying at lowest and selling it not lower then a certain price that would then compromise my wallet. I should project more the actual real life in my trading. Why we look for the best and cheapest car on the market (for instance) to then resell it at a big deal or at least a reasonable price but then we buy the shittiest stocks at the shittiest price? No market has buyers such as the stock market, imo. Any market is made by "reasonable" people that buy reasonable goods at a reasonable price. Traders from the newbie till the best? I am not that sure. I personally think that pain is something that has inevitably to accompany each individual that want to improve his practice. Traders have to accept the eventuality of losing today, this week, this month and even longer in some cases. This expresses the natural duality of everything in the universe we live. I have to live with the acceptation that tomorrow I will be better than today, that I am not playing being god!