There is still room to pullback, so I used small position size.
300 shares SKF at $44.11
400 shares SRS at average price of $20.91.
Stops are place below recent lows.
Showing posts with label price volume support. Show all posts
Showing posts with label price volume support. Show all posts
Tuesday, May 26, 2009
Today's Trades: SKF and SRS
I used today's strength to enter two bearish focus list stocks today, SKF (financials) and SRS (real estate). Both are inverse shorts. Note that strong volume pattern during the price consolidation range.
There is still room to pullback, so I used small position size.
300 shares SKF at $44.11
400 shares SRS at average price of $20.91.
Stops are place below recent lows.
There is still room to pullback, so I used small position size.
300 shares SKF at $44.11
400 shares SRS at average price of $20.91.
Stops are place below recent lows.
Monday, June 02, 2008
The Power of Strong Support
I outlined my entry in APA on Friday. Today the stock is up over 3 points on a negative day for the market (as of noon eastern time). This is a good example of the power of strong support.
Thursday, September 06, 2007
Indicators are not the be-all and end-all!
Lately I've received many e-mails and comments asking me why I made a trade when so-and-so indicator was divergent or not giving a buy or sell signal. This comment left by Rey is a good example:
As I've stated before, I use indicators as a secondary tool. Sometimes I don't even look at them. I am a slave to price and volume patterns, along with support and resistance.
Earlier in my trading career (if you can call it that), I placed more emphasis on indicators than I do now. If there is an indicator out there that I have not studied or used, I would be surprised. As I've evolved as a trader, I've taken a more intuitive and simplistic approach. As a consequence of viewing, literally, over a million charts, I trust what my eyes tell me. I'm not going to back out of a trade I like because one or two indicators give me a negative signal. Especially when I could probably find an indicator or two that give the exact opposite signal!
That's not to say indicators have no value. I do like to use OBV, Stochastics and RSI (the only three I use regularly). However, I am not a slave to them, and will defer to my own judgment if it tells me to do the opposite of what these computations tell me to do.
That's exactly why I traded GRMN, on the $105 breakout, although there was a divergence. The stock hit $108 today. Divergence be damned!
The four five books that I recommend most are on the top right margin of the blog. It's tough to pick one, but if I had to, it would be one of Thomas Bulkowksi's chart pattern books. The Farley book is good, if you have some background and don't mind reading through dense material that at times doesn't make sense.
I use Telechart for my evening chart reviews and scans.
"It looks like I don't see eye to eye with you sometimes regarding going long on stocks that are about to break out with divergance such as MACD, OBV or any others... all the books I have read teaches don't get in on break out if there is majar divergence...what am I missing here?
and also what is your favorit book(I was just layed off work so I got some more time to fill) and what softtware do you use to find and analyze stocks if I may ask..."
As I've stated before, I use indicators as a secondary tool. Sometimes I don't even look at them. I am a slave to price and volume patterns, along with support and resistance.
Earlier in my trading career (if you can call it that), I placed more emphasis on indicators than I do now. If there is an indicator out there that I have not studied or used, I would be surprised. As I've evolved as a trader, I've taken a more intuitive and simplistic approach. As a consequence of viewing, literally, over a million charts, I trust what my eyes tell me. I'm not going to back out of a trade I like because one or two indicators give me a negative signal. Especially when I could probably find an indicator or two that give the exact opposite signal!
That's not to say indicators have no value. I do like to use OBV, Stochastics and RSI (the only three I use regularly). However, I am not a slave to them, and will defer to my own judgment if it tells me to do the opposite of what these computations tell me to do.
That's exactly why I traded GRMN, on the $105 breakout, although there was a divergence. The stock hit $108 today. Divergence be damned!
The four five books that I recommend most are on the top right margin of the blog. It's tough to pick one, but if I had to, it would be one of Thomas Bulkowksi's chart pattern books. The Farley book is good, if you have some background and don't mind reading through dense material that at times doesn't make sense.
I use Telechart for my evening chart reviews and scans.
Saturday, August 11, 2007
Trades: AAPL and NOV
I sold 150 shares of AAPL at $125.84 (entry at $121.75) for a $613.50 gain (+3.3%). I noted the exit in the comments section of my last post.
At the close, I sold 200 shares of NOV at $116.11 (entry at $109.64) for a $1294 gain (+6.0%).
Both trades were pullback plays off of extreme weakness. While buying on this type of weakness can be risky, I felt they were low risk, high reward trades. When I bought the stocks, they had fallen right into very strong support areas. If you look at the charts below, you will see that price could not help but to bounce.
Note that these were extremely short term plays. AAPL actually looks like a good short candidate for my normal swing trading style, and is on my primary short watchlist. However, it was obvious the stock was a good long day trade, due to the support level.
NOV is still a good long candidate, as long as the 50 day moving average holds and OBV remains strong.
At the close, I sold 200 shares of NOV at $116.11 (entry at $109.64) for a $1294 gain (+6.0%).
Both trades were pullback plays off of extreme weakness. While buying on this type of weakness can be risky, I felt they were low risk, high reward trades. When I bought the stocks, they had fallen right into very strong support areas. If you look at the charts below, you will see that price could not help but to bounce.
Note that these were extremely short term plays. AAPL actually looks like a good short candidate for my normal swing trading style, and is on my primary short watchlist. However, it was obvious the stock was a good long day trade, due to the support level.
NOV is still a good long candidate, as long as the 50 day moving average holds and OBV remains strong.
Friday, August 10, 2007
Trades: MS, AAPL, NOV and CROX
I covered my entire 800 share MS short, half yesterday at $63.05 and half today at my target, $60.10 (average entry price was $65.89). That comes out to a $3455 gain (+6.4%).
I have not unloaded CROX yet, despite currenly being about 5 points down (-$2000). I've decided to use a very loose stop, just under the 50 day moving average. The potential loss is bigger than originally calculated, making for a crummy reward to risk ratio. I rarely make this kind of move, but there is strong support at the new stop level.
I bought 150 shares of AAPL at $121.75. Technically, the stock looks broken. However, take a look at the price by volume bars on the chart. There is a lot of support here, so I expect a bounce.
I bought 200 shares of NOV at $109.64. The stock i still holding at the moving average, and again there is a lot of support at this level.
I have not unloaded CROX yet, despite currenly being about 5 points down (-$2000). I've decided to use a very loose stop, just under the 50 day moving average. The potential loss is bigger than originally calculated, making for a crummy reward to risk ratio. I rarely make this kind of move, but there is strong support at the new stop level.
I bought 150 shares of AAPL at $121.75. Technically, the stock looks broken. However, take a look at the price by volume bars on the chart. There is a lot of support here, so I expect a bounce.
I bought 200 shares of NOV at $109.64. The stock i still holding at the moving average, and again there is a lot of support at this level.
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