• Second Day Play on stellar earnings
ADV 4.73 M RVOL 2.07 ATR 3.22 BETA 1.49 Short 1% Inst Own 77.20%
• Long off the trendline if it holds again today,
• Treat this as resistance level if it breaks early in the morning and stays below 157
• Possible longs at 156 and 155 for a move back into the trendline right around 157
• VWAP tests, stay on the right side and use stops to enter
Reading the Tape
SMA Resistance - I had no plans to short this on my list today. The flush below what I had marked out as the recent trendline gave me thoughts that maybe this would give it up. It was a solid limit in. But, it gave me 4 shares. I was debating on letting them fill and missed a chance to take a solid 80 cent scalp (regardless of size) before it moved against me. The fact that I was so small allowed me to sit through the pain and add as this thing spike above yesterday’s close a level that I did not account for. I was little lucky on this add. I ended up getting a solid flush past my avg price and enough of a stall for me to get almost 40 cents on the trade.
SMA Resistance -This was almost textbook. The better entry was one minute early on the first test of the descending SMA. I was trying to hold this for a bigger run and gave up a solid 2 for one trade risking 157.77 at the time. So, I was going to follow with the tightest structure that I could and ended with way less than this trade gave me if I would have taken the 2 to 1.
Why the hell was I shorting this??? This is unacceptable to go totally against me game plan at this level testing this trend line.
Intraday Resistance-I was alert on this trade. I was looking for a small rejection of the spiking candle at 939 EST. This gave me about 7 cents of risk on this trade and felt the tape was stalling enough that this had the chance to give me a 2 to one setup. I was targeting a tap of the SMA which needed about one more minute and was only fractional better on the exit. This was great scalp!. I would say do this more. But, these can put me on the wrong end quick. I will make sure that I am trading with discipline before trying to develop rules for something like this.
Intraday Resistance- I took the break without stopping into it. This would have allowed for a tighter stop. That may have given a one for one. I marketed in and got a high fill leaving me with a nasty market structure stop. The risk on this play should always be the breaking candle and I gave this way too much and did not set the trade before playing the break. This means that I need to limit in on the SMA or just above the breaking point. In this case, that was .98 all three would have lost but the stats and the process would have given a better chance. There was a small chance of a one to one the stop entry.
This short and the next long are momentum set ups that I really should not have taken. I had a trade set up that I should have taken. They were both sized up and I was starting to edge. They were both profitable. I was just not where I needed to be after missing all the rules on the prior intraday resistance play. The worst part is I delayed on setting a limit at VWAP to play for a VWAP support play. This lead to the final long hack before I decided to walk away for a break.
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