Discussion in 'Journals' started by Brandonf, Jul 15, 2003.

  1. Brandonf

    Brandonf ET Sponsor

    [09:03] <Brandon> This is the chart from the JBHT trade
    [09:03] <Brandon> basically on any given day you are going to get out of 6 to 10 trades 1 or 2 that make it justified for you to have shown up
    [09:04] <Brandon> the rest of them will be blah blah blah
    [09:04] <Brandon> yesterday it was GILD
    [09:04] <Brandon> today we have this one
    [09:04] <Brandon> think in terms of what should happen
    [09:04] <Brandon> that is the starting point with JBHT
    [09:04] <Brandon> gaps have a very strong tendancy to fill in
    [09:05] <Brandon> it takes a lot of strength to resist filling in
    [09:05] <Brandon> JBHT had a very large gap up
    [09:05] <Brandon> and instead of starting to immediatly fill
    [09:05] <Brandon> it went up slightly
    [09:05] <Brandon> then it had some sideways basing action
    [09:05] <Brandon> the basing action serves as a resting period
    [09:05] <Brandon> allows the stock to cool down, to rest
    [09:05] <Brandon> nothing moves in a straight line
    [09:06] <Brandon> so after the stock has a chance to rest
    [09:06] <Brandon> that is when you will buy it
    [09:06] <Brandon> in this case the breakout

    • jbht.gif
      File size:
      13.6 KB
  2. nitro


    This was a nice trade if you could get it.

    I watched the stock (the B/A and the time sales) from the time you posted the buy stop above .65 in the chatroom. Unfortunately, the B/A spread on the stock was at least a .10 on the stock, and there was very little on the offer at most of the price all the way to the figure, at least on my quotes thru SMART routing on IB.

    Still, nice trade if you could get in....

  3. Brandonf

    Brandonf ET Sponsor

  4. ddog


    You posted this trade in the ET chat room:

    "Brandonf (Jul 15, 2003 9:24:08 AM)
    [08:30] 08:30:10 EMINI DAY TRADE: SHORT SETUP NQ here. Stops above 1313."

    My charts show it traded to 1314, so you were stopped out?
  5. Brandonf

    Brandonf ET Sponsor

  6. Brandonf

    Brandonf ET Sponsor

    SP[09:33] <brandon> some people have been confused because yesterday when we took the short it was for the simple reason that we are up near the Globex highs
    [09:33] <brandon> and today we took the short even though it was only a few points off the Globex lows
    [09:33] <brandon> This is why technical analysis is so interesting
    [09:34] <brandon> and why most people never develop any real profeciancy in it
    [09:34] <brandon> because there are no absolute rules
    [09:34] <brandon> all the rules are relative to whatever else is going on[09:34] <brandon> so they can remain in flux
    [09:34] <brandon> and people have an overwhelming tendancy to want to think in terms of absolutes
    [09:35] <brandon> but this is not possible as a trader
    [09:35] <brandon> you need to think in concepts
    [09:35] <brandon> because the absolutes always change
    [09:35] <brandon> the concepts NEVER change
    [09:35] <brandon> for thousands of years they have stayed the same
    [09:35] <brandon> but the hot setup of the minute fades
    [09:35] <brandon> support
    [09:35] <brandon> resistence
    [09:35] <brandon> trends
    [09:35] <brandon> volatility
    [09:35] <brandon> these are important concepts to grasp
    [09:35] <brandon> gaps
    [09:35] <brandon> volume
    [09:36] <brandon> so here with the ES you can see we gapped up on the open
    [09:36] <brandon> most gaps fill
    [09:36] <brandon> over 70% of gaps fill
    [09:36] <brandon> so now what
    [09:36] <brandon> look for a setup point
    [09:36] <brandon> well
    [09:36] <brandon> we had that right at the open
    [09:36] <brandon> because we opned up at the 200 period moving average
    [09:36] <brandon> and you can also see the circled areas of prior resistence
    [09:37] <brandon> yesterdays price action was also very weak

    [09:37] <brandon> basically what it came down to its 3 or 4 things coming together at the same time
    [09:37] <brandon> and that almost always makes for something very strong

    • spu1.gif
      File size:
      14.4 KB
  7. jjordan


  8. ddog


    No "and". You just didn't follow up on it.
  9. Brandonf

    Brandonf ET Sponsor

    • qqq1.gif
      File size:
      17.1 KB
  10. Brandonf

    Brandonf ET Sponsor

    #10     Jul 17, 2003