My closed P&L of $48K begins from 3-07-02 since I began posting on this board. I have a closed P&L of $154K YTD. I will start a new monthly thread on May 1st and update MTD and YTD so it's easier to follow.
MRK has tested it's April resistance in the $57.25 area and is now retracing. Also, note that the April resistance line is March's support line which is another signal that MRK won't break the $57.25 area.
I was looking to short it myself yesterday as it showed up on the Sky Scraper Scan. http://www.tonyoz.com/sky.htm The setup was great. 1. Gap filled. 2. Running into resistance in the bear flag area set on 3/26-4/3 The main reason I did not take the short was that the 20 day MA at 55.75 was too close to entry price of 56.60 or so. I personally like the setups better when the stock turns at the 50 day MA and use the 20 Day MA as my conservative price target. Although by using my calculator to figure out price targets I could have easily entered a short trade on MRK and not violate my Risk/Reward ratio (as seen by the attachment), I chose not to do so. An entry at 56.60 and stop at 57.05 (0.06 above day's high) would result a risk of 0.45. The most conservative price target at 54.99 would have been good for 1.61 reward. If my math is correct, it is better than 3 to 1 Tony PS: This is not criticism of Seanote's trade. I just wanted to show that the setup was good, but I can be too picky at times
Tony, that is the "bull market" target and as far as I can tell neither the general indices nor MRK are in a bull market right now. Just curious why you chose that as your target rather than the "bear market" target. Also the BB were pretty squeezed together on the MRK trade...I guess what I'm trying to say is that I think I would have taken it.
Babak, I said [even] "The most conservative price target at 54.99 would have been good for 1.61 reward" I was referring to the highest price target the calculator showed I use the sideways market right now for my price targets. Tony
I didn't see this part of your message. I would have liked the potential "top" to be closer to the upper BB and 50-day MA. I wouldn't have thought about it twice if the Sky Scraper setup was in between the two horizontal lines. As I said I'm too picky Tony