Tuesday, February 14, 2012

8 day record?

We can’t remember the last time we saw a stock trend above the 20EMA chart for 15 days and even more impressive trend above the 9EMA for 8 days.   $AAPL is the only stock in our universe that has done that this year.    Any other examples out there (non-small cap)?
If you want to short this behemoth at least do yourself a favor and wait for the trend (at least the 20ema/60min) to break.
20EMA is blue line, 9EMA is orange.

Monday, February 13, 2012

This is how we trade

We keep things very simple for our trading.   Every day after the close we manually scan through our universe of stocks looking for patterns to trade.   This is our homework and anyone can buy it for $44.76 a month.    We send our alerts out to our subscribers.   The next day we review everything that triggered, win or lose, whether we traded it or not, etc.
During the slow parts of the day we start writing the newsletter.   Right now we have taken day-trade profits in $AMZN $KLAC $ALTR long,  $WYNN short, and have small swing size positions on with hard stops that we’ll take into tomorrow if we don’t get stopped in the next 3 hours.
Our Sunday morning newsletter included all the alerts that we review today:
KLAC support was 49 or 48.5 overshoot. At 49 stock was trending lower without any pause, but finally green bar reversal on 48.5. Decent move back to the 20ema at 49 (overshoot often rallies back to primary support – that’s the first day-trade target).
ALTR 39.26 alert—found it’s footing just under and decent bounce back to S1 (day-trade first target).
We liked our chances with KLAC ALTR also because of SMH coming within pennies of our 33.8 support. The more support that hits at same time, the greater the chance of recovery.
WYNN short 112 at open we found impossible as it went on opening bar, bounced on S2, but gave good entry on bounce back to the 20ema and back to new lows.
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AMZN was the star of the day – but you needed some conviction on this one to buy the new high near the open. For those who hesitated stock gave second entry on pull-back to R1 at 188 and then great action to 190 which was first day-trade profits.  (Trend-line break was on our newsletter for Friday, and 188 was sent out Sunday morning — AMZN is one of the best trading stocks right now in the market).
Swing long as long as 188 holds.
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Every day after the close we manually go through our master list of 300 stocks to look for patterns. Sometimes on weekends we look for new names and do scans – FTI was a product of a scan. We often regret adding them after as we realize “there’s a reason the stock isn’t on our master list”. We wrote yesterday that FTI was not a good trading stock but 55 was big number. Decent swing candidate to keep an eye on on a close over 55, but crappy day-trade action at extended run and scum of 55.
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We don’t like surprises.  We like trading our pre-determined list every day and nothing else.
All charts are from E-Signal– our subscribers get a substantial discount on their service. If you’re interested please email us at info AT highchartpatterns DOT com