MS Trade on Jan 17, 2019 09:37 from math_psycho: Tradervue User Stock Trades.

TICKER: MS
BIAS: NEUTRAL
SUPP: 41, 42
RES: 45, 46.75, 47.5
GAP%: -3.7
AVGV: 13.4M
ATR: 1.44
FS%: 1.22

NEWS: Morgan Stanley (NYSE:MS) slumps 5.7% in premarket trading as Q4 adjusted EPS of 73 cents misses the average analyst estimate of 89 cents as the quarter's market swings dented results in fixed income sales and trading. Compares with $1.17 in Q3 and 84 cents in Q4 2017. Q4 revenue of $8.55B fell from $9.50B in the year-ago quarter; pretax income of $1.86B fell from $2.47B Y/Y. Institutional Securities revenue of $3.84B fell 15% Y/Y as lower performance in fixed income sales and trading more than offset strong results in investment banking, especially in M&A advisory.

PLAYBOOK TRADES: SHORT GAP DOWN PULLBACK or LONG GAP DOWN BOUNCE. For the SHORT GAP DOWN PULLBACK TRADE look for the stock to show signs of weakness and selling strength as it trades below VWAP in the morning and continues to make new lows. A pullback to VWAP with a stop above local resistance levels is the play here. For the GAP DOWN BOUNCE LONG look for support levels between 41, 42 to hold and enter with LOD as stop.

NOTES: The stock has sold off from September highs of $50 down to the $36 level. It is showing neutral strength and should be a long at some support price today, it is just a matter of being flexible here. For the actual trade, I did not go with the plan and adapted to a long bias when the market was showing overall strength. This was a mistake as the stock continually traded below VWAP for the early morning session and was showing relative weakness. The initial SHORT GAP DOWN PULLBACK trade was the appropriate playbook trade here. Since my bias was neutral, I could have also been open to the reversal LONG GAP DOWN BOUNCE. I did not take this trade.