Shared by
markmandy54_BOWS
Daily had a gorgeous triangle that today had the gap up on volume. Waited for slight pullback and when volume came in i got filled at the new highs, with the stop under the VWAP with minimum risk of -.15. Got stopped out.
Notice price bounced so attempted again with a stop under the most recent low and got hit yet again.
Price was extended and was coming into bounce zone at previous day highs and rising 50MA intraday. Used a very tight stop -.08 with a target of +.30, +.50 and got stopped to the penny before it ripped.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-01-27 09:46:47 | GTAT | buy | $9.900 | long |
| 2014-01-27 09:49:44 | GTAT | sell | $9.750 | 0 |
| 2014-01-27 09:59:41 | GTAT | buy | $9.740 | long |
| 2014-01-27 10:17:30 | GTAT | sell | $9.600 | 0 |
| 2014-01-27 10:32:59 | GTAT | buy | $9.290 | long |
| 2014-01-27 10:38:39 | GTAT | sell | $9.210 | 0 |
Comments
johnc_BOWS
Gotta adjust your style on days like this, bud. SPX was under its 50dma when you took this trade. At your entry, the stock was up nearly 10% from previous day's close on a day when nearly every stock on my watchlist was red, SPX (and soon IWM) under its 50dma, and your stock only consolidated for 5minutes before your entry.
markmandy54_BOWS
Your reasoning was the exact reason why I was licking my chops on this one. The relative strength was ridiculous. SPX been sold off hard last 3 days and dipped under the 50MA so was expecting a bounce today (or tomorrow) in the markets overall and this daily looked great as just kept coiling in that triangle on daily. Intraday, kept tapping highs.... i thought this ticker was a do-er....but turned out to be a don't-er
Hmm maybe it's just a difference in our styles. I was personally biased against longs unless the stock 1) is coming out of a long consolidation or pullback or 2) the stock is squeezing up after finding bottom. I noticed that Kunal and Szaman were also trading this way.
My reason for trading this way when the market is weak is that buyers are going to be more cautious today. Your first entry came after a 5-minute consolidation, which is fine when the market is bullish (I personally wait for at least 10-15 minutes).
You took your second entry, but you had no confirmation that the stock had recovered. Your only support level was the newly established low of that candle that stopped you out, but you had nothing else supporting it. No MAs, no base.
Again, maybe it's just a difference in our styles. I just know that when I take these kinds of trades during these kinds of market conditions, they don't work out for me.
Thats why I appreciate your feedback. Forces me to revisit my thought process on days it just ain't Workin. Thanks John.
Likewise, brutha. That's why I'm gonna start posting my trades again. I got cocky and thought I had it figured out, but I'm making dumb trades lately, partly because I don't have any accountability.
oly_BOWS
I had your 2nd entry/exit almost identically.
I'm with JC - I need to be cautious when the index is tanking and not just assume it's a bounce day. I'm also going to make a point of having a few shorts in a backup watchlist ready to go.
EL_BOWS
Hey Mark; on any of the days before the last 3 that we've had since I took the course, this is a pretty good ORB attempt on the first entry. Stock had gapped up on relatively high volume, dipped on small volume, then you bought with an excellent entry as it crossed to new highs. Nothing wrong with that on most days. I think most of us had issues in the morning yesterday.
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I tried this one also. I liked the daily combined with the gap. No dice. If the market action had pulled forward about 4 hours, I think this would have gone in that enviro.