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MarcoG

 

JPM

Jan 14, 2020 10:25


Shares traded: 400
Closed Gross P&L: $-29.00
Gross Return: -0.29R

Tags:

DayTrade Account Real Money Up-Trend Continuation PullBack PMHigh Pull No Gap AllTimeHighSPIKE

Consolidation & Pull-back play above pm high /All Time High on ER Beats!!


Overall Picture

SPY at All Time High zone got to retrace in today's pm session getting to open exactly at yesterday's close. I would not see that as weakness while perhaps just a correction. Let's see what the open preserve to us!

Today's Watchlist

Today I had on the wachtlist: DAL, WFC, SDC and JPM. I had as back burners. TSLA and LK as beta names. I di not select BYND cause I have thought that today it could have taken any direction after the FOMO in yesterday's trading session

DAL: Adjusted earnings per share of $1.70, a 31% increase year over year; above guidance of $1.20 to $1.50 on stronger revenue, lower fuel and a nine-cent net gain related to the unwinding of the GOL relationship.
DAL was on watch due to the earnings release. Unluckly the action has been quite disappointing considering that I was long biased on the stock.

WFC: Estimates: Wall Street expects Wells Fargo earnings per share to fall 7% to $1.12. Revenue was seen slipping 6% to $19.81 billion. Results: EPS of 60 cents or 93 cents excluding legal costs on revenue of $19.9 billion. Community banking revenue fell 8% to $10.52 billion driven by lower net interest income. Wholesale banking revenue fell 5% to $6.56 billion. Wealth and investment management revenue grew 3% to $4.07 billion. Stock: Shares fell 3.8% to 50.13. Wells Fargo stock on Monday slipped below a flat base with a 54.85 buy point. Shares have a 62 Composite Rating and a 65 EPS Rating.
WFC missed badly the earnings release. I would have been interested in case the stock would have broke pm low pulling back. It didn't occur I didn't trade it.

SDC: SmileDirectClub, the industry pioneer and first direct-to-consumer medtech platform for teeth straightening, today announced plans to offer its clear aligners through the wholesale channel, providing dentists and orthodontists an in-office option in 2020. With the December 31, 2019 expiration of its exclusive supply agreement with Align Technology, Inc., SmileDirectClub will expand access to its clear aligner therapy solutions and open its network to dentists and orthodontists in search of a premium and affordable teeth straightening solution for their patients.
For as much as I didn't really like the catalyst supporting the stock, SDC was the best in my list for the pm action. SDC got to break pm high but pulled back enough for me to stay away from it.

Play

JPM

Company Description

Sector: Financial Services
Industry: Banks—Diversified

JPMorgan Chase & Co. operates as a financial services company worldwide.

Trade Scenario

JP Morgan Chase (NYSE:JPM) announced earnings for Q4 this morning and the report is a favorable one for the bank. Revenue is up 9% to $29.2 billion and its earnings per share (EPS) of $2.57 comfortably beat analysts’ expectations. Read on for a full run-down of the stats from the report.

Technical Levels

Support:

S1 137.20
S2 136.90

Resistance:

R1 138.75
R2 139.44
R3 139.95
R4 141.10(all time high)

Inflection: 139.95 (wrong reading here)

Trade Plan

JPM is on my list as a long I do not like the pm pattern and I have been right! Perhaps the trade could have been avoided but surely started at R2 rather than R3

Set-up: Up-Trend Continuation entering at pull back to inflection.
Side: Long
Size: 100 / 100 (Entered with 100 shares starter position, my entry was not an A+ setup thus I have decided to build the position up risking at the beginning 50$ instead of 100$)

Entry: 140.03 / 140.04

Takes:
Exit: Initially below 139.5

Trade Overview:

Analysis:

1) I have noticed JPM bouncing back and recovering all what faded in pm sitting perfectly on R2 presuming a certain strength was there supporting the continuation higher.
2) Once price got to trade at high of the day I have held for it to pull. It occurred
3) Bought the first pull to pm high and than the second.
4) Price never confirmed with a new high while got to form a sort of bottomed triangle that looked not bullish at all.
5) I have exited once price showed a certain willingness to trade below 140 exactly @ 130.5. My trade would have been still valid, and is so true that price got back testing again 140.

Tape reading:

1) I have made use of the tape in relation to these solid orders at important technical levels. It has been a good read.

Same occurred once 140.13 became resistance. Other 10K shares order got definitely to control the area pushing the price below 140 trading @ 139.50

Orders:

Handling way better my order type on the new platform, feeling more relaxed when in a trade being aware of having the control of my positions.

Intuit:

I have perhaps lacked in accuracy today! As I always report the pm action is for me a kind of brochure you read before the show starts. You have there an overview on what you are going to see once the show will start. I guess a fade that brought filling the entire gap would imply a big bounce to bring the price back up. And I guess that pretending that such bounce would have kept going on and on with no retest it's just madness. I had a wrong overview on the stock that lead me to miss perhaps the big picture and general insight.

Internalization:

I have missed the beautiful support created on R2 @ 139.44 and acted as a donkey missing the reading on the action.

Comments:

The beauty of trading stocks lays in the fact of having on a daily basis the opportunity to review and implement your practice and psychological condition. Today as expected arrived the moment for me to review the pm high/low level. My entries are exclusively at pull back to pm high/low (at least my aim is that). This practice provides me safety in trading only those stocks supported by a sufficient buying impulse to lead the stock trading above pm high but on the other hand his blinding me in realizing the bigger picture. JPM today considering also the fact that was gaining back the gains achieved in pm clearly showed where was going to support thus on the R2 @ 139.44 should have been my entry (the first pullback). This would have granted me 2 takes or so, not the best trade, but perhaps the best way for me to trade this name today.

What I did not like about the trade:
I didn't like that the will of trading kicks in hard, and is so difficult to be extremely selective. Yesterday I wanted so bad to trade BYND but cause it is a wild beast and I avoided it in the past I stayed away. But the miss has been huge there and with it the frustration. Just put a stone on top cause still I had respected my rules.

What I have liked:
I have liked the way I have managed my trade. The add in such way is something I would love to achieve one day. We needed perhaps a higher low as confirmation here. Holding tight with no fear adding to your position tho is my goal. Pity price got 1 cent to my first take at 140.39. I am happy though really happy on how I have controlled emotions and orders. the $3 Billions float didn't really help :P I have exited prior my original stop cause I have considered pointless being in once confirmations stepped in marking lower highs and testing 5 times the 140.

Additional Comments if any:
From tomorrow I will aim to enter not anymore only at pm high but as soon as I have a higher high candle on the 3/5 minutes crossing the pm high. Any pullback after that could be bought even if price does not hold in that precise moment the pm high but the level of support. Same thing when shorting but with the pm low level.


Execution detail:

Date/time Symbol Qty Price Position
2020-01-14 10:25:17 JPM 100 $140.030 100
2020-01-14 10:59:17 JPM 100 $140.040 200
2020-01-14 12:00:07 JPM -200 $139.890 0


Comments

Gravatar cfo9
2020-01-14 16:35:50
 

great work, good trade!

2020-01-14 22:26:37
 

Thank you the man!

2020-01-15 13:37:12
 

use 15 and 5min ti will help you out. take trade on both show entry

2020-01-15 14:08:59
 

Thx for the hint alhadi249!!

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