Thursday, December 23, 2010

Focus on a few and then hit them hard!

As we wrote in our last blog post, ideas are a dime a dozen.  What's key is to be able to hone down the list into an actionable number.   There are literally dozens and dozens of "ok" set-ups one can fill one's watchlist with every day.   But in our experience the more mediocre set-ups you watch the less money you will make.   Focus on only the best and then hit them hard.      These are ALL the trades that triggered for us for the last trading week winners and loser complete with the reviews the next day that we wrote for our subscribers.    As you can see each day only 2 or 3 trades triggered.  Not less, not more.     

Last Friday's triggers:
"We had waited for this MON 64 breakout for weeks and had written on Thursday night that it was our best set up going into Friday.  We wrote to watch for base and break 50 cents under and indeed that's close to where it set-up.   Nice run for over 1.5 points.   We're still swing long partial of the daytrade that we did not exit.    We had on pretty big size in this trade -- we had waited weeks for this (including an aborted target swing trade), and we would be damned before we missed our MON breakout!"
"DECK we wrote was a "high-end" set-up which means for the most part to hit and run.  We wrote on Thursday to watch for base and break between 83.4-84 for a run to 85+.  Worked very well at 84 and a lot of you daytraders caught this.  Nice. "
"WYNN we wrote needed one more day to set-up at 107 (it was a one day touch on daily).    It didn't wait and ruined the spot on Friday.   One touch spots have a relatively high failure rate and this one was no exception.  Too bad as it could have been a nice spot on a good runner."
Monday's triggers:
"AMZN opened at our 179 number, ran up two points, and then reversed down to base on R2, made higher low, and then ran up to 182 secondary breakout for a decent 5 point move from our alert.  A bit of a roundabout approach (common to crowded trades such as this one) and we imagine most of you who were involved caught the opening rip but fewer caught the secondary move."

"CRM 134 short alert technically worked for a daytrade but it was very extended by the time it hit our alert and was not a good risk-reward entry.   If you wanted it short then possible entries were against the 9EMA this morning as it was trending down.   Even though 134 short was successful for a quick daytrade that's not the type of trade we'd want you to take."
Tuesday's triggers:
"APA 118 clean set-up at number and travelled 80 cents before reverting back to number.   Somewhat boring but we don't expect much from big cap stocks in holiday weeks. "

"We liked how GOOG touched the minor spot in the AM -- this was a good type of trade to buy pullback in near the 9 EMA on reversal back from R1.      At 603 it was Indy type set-up as stock was riding up the ascending EMA with 603 resistance on top.   If you didn't get in before entry was 603 with stop on 20EMA which at that time wasn't even a point (incredible for a 600 dollar stock).   However stock didn't do much  as it bumped up a few points and closed on the alert.  "
"MEE had some news this AM and opened at our number and did nothing all day. "
Wed triggers:
"DVN based at 75 and then had a decent 1.6 point run. "
"SU opened at our old 37 spot and rose for 2%.  If you're holding swing prepare for some choppiness in the 38 zone -- long time resistance. "
Thursday (today) triggers:
"We had been watching this CF 130 spot for a long time -- and it really set up for this breakout yesterday.  Two days ago we wrote that it still wasn't ready but last night we wrote "Looks good for breakout anytime now".   Very nice 4 point rip. "

"GM 35 was an old alert that came back in play yesterday.   Very nice little trade here from our spot. "
Remember, focus on the best and then hit them hard!

Happy holidays to all our readers -- stay safe and see you next week.