Great New Pattern

Discussion in 'Technical Analysis' started by rtharp, May 30, 2001.

  1. I'd say about 90% of my trades are done within the first 20 minutes for about 80% of my profit.


    There is a chat on my message board. Feel free to use it. It's been my experience it's kinda slow to post things but you guys are invited to have fun.


    http://communities.msn.com/Rtharpsland/chat

    I have my setup's already by market open. I'll run a few and post them on this message after here:




    short:
    LH is definitely one. This is a volatile sucker and expensive. If I'm right on the short side I'll make a killing tomorrow.

    BBI, FRX, GZMO, PETM, TRR

    LH is my favorite BBI and TRR a close 2nd.



    Long:

    not many for me came up today again. SSSW If I don't have signals I don't force trades.
    The key is confirmation. I must have it. That means opening price is above yesterday's close for a long and opening price must be below for a short. Think of what I'm doing as bringing balance to things heavily in extremes.

    The cash markets I see on the corner window of CNBC dictate my trading direction. All red I'm shorting mainly, all green - I'm long. Don't fight the trend.

    KG worked like a charm on the short side today. In fact I've found the opposite of Pre's type of pattern to be of higher probablity and have better R multiples.

    My stops are pretty tight. I usually just use yesterday's closing price, or a point whatever is smaller. The reason the downside works so much better is the use of bullets (thanks Echotrade), huge short list and ability to short as much as I want (thanks Paxclearing)and the fact markets go up slowly but down quickly. If I'm wrong with a tight stop no worries , it usually very easy to get out. When I'm right the stocks drop like a rock. It's a lot of fun being short and seeing the market had no bidders anywhere in site. (just remember how overbought the stock is on a daily/weekly chart)

    I usually have a ratio of a stop of .10 and am sometimes making 2 to 3 points. If you guys have read Trade Your Way to Financial Freedom I'm talking about 30R's. Risk 1/2% and make 15% on your return. Not too bad. :)

    Robert Tharp

     
    #41     Jun 6, 2001
  2. I'm currently short on LH as well. Big runup the past several days, as well as the fact that it peaked out today at a previous resistance level. I'm looking for a multi point retracement.
     
    #42     Jun 6, 2001
  3. Im not so sure of lh just b/c it worked off a multimillion share secondary really fast. It might drop a few, but I think if the market had been stronger, it would have trucked another 5 today. Man, I still remember buying 2k at 100.15 2 months ago and booting them for a 3 pt profit and being psyched. Ohh well. I really don't have anything I like much. Bur has a decent pennant, but not much upside really. I might just sit tomorrow out. I think we start to really gain momentum to the downside so we should have some nice plays soon. I took 10.5k today. It feels good to have a 5 digit day again. Im still long a few k of usg, if it's strong early on, I'll buy more. Otherwise, Im just playing the news. Do appb or fwrd or kpn do anything for anyone? I might also play nvr.
     
    #43     Jun 7, 2001
  4. Jeffrey

    Jeffrey

    Yes, I like aapb, and nvr. Just tells me that I need to learn how to scan. I thought I spent enough time last night. Oh, well. Time will fix it.

    P.S. I got TLAB at the open.

     
    #44     Jun 7, 2001
  5. Appb moved too fast, NVR I bidded for and wasn't hit on. IM long Fwrd, but just 1500, not that confident. ELY too, but not sure where the bottom is.
     
    #45     Jun 7, 2001
  6. Jeffrey

    Jeffrey

    ELY support 18.75

    This would be good tomorrow. Look to play this as I played TLAB today.

    Next supports 17.97 and 17.19

    I would only try to go long off, or above 18.75, or 17.19
     
    #46     Jun 7, 2001
  7. update on LH. There was 48 million sitting as support -30,000 shares at 159.5 so I've covered with a small profit for my short (only $80 today :( yech but better than a loss--

    Should probably go up today maybe tomorrow than a shorting opportunity. Nothing new to report

    rtharp
     
    #47     Jun 7, 2001
  8. Curious, what software and formulas is everyone using to find candidates for GNP plays? Thanks

    I'm scanning on Stockscharts.com and keeping a list. There must be a better way. :)
     
    #48     Jun 7, 2001
  9. Just noticed WDC looking interesting. Anyone like it?
     
    #49     Jun 7, 2001
  10. I just keep scanning. IM sure i miss most. IM out of all but 1400 fwrd, I took 4500 in the end, and made .7 on em. Still have 4500 ely. This one sux. I have no other positions. WDC is probably ok for a quarter. Im not really interested. The upside just isn't large enough.
     
    #50     Jun 7, 2001