NoDoji's Day Trading Log

Nodoji,

ORLY being added to S&P500..........

NEW YORK -- Standard & Poor's said Time Warner Cable Inc. will replace Developers Diversified Realty Corp. in the S&P 500-stock index after the market closes on Friday, March 27.

Time Warner Inc. is spinning off its remaining interest in Time Warner Cable to its shareholders in a transaction expected to be completed on or about that date. As of Wednesday's close of trading, Developers Diversified Realty had a market capitalization below $325 million, ranking it 500th in the index.

Also, O'Reilly Automotive Inc. will replace Noble Corp. in the S&P 500 after the close of trading on a date to be announced. Noble is in the process of redomesticating to Switzerland, which will render it ineligible for continued inclusion in the S&P 500 index.

Time Warner Cable is a cable operator that is based in New York. O'Reilly Automotive is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories with its headquarters in Springfield, Mo.

 

I simply did not like the opening price of HOTT around 9.70 so i closed my position at around 9.50.Wow it is hitting around 10.00.now i have to stop trading Hott for few days to watch price action,how high it can go,lets see.Sitting out is hardest thing for a trader.

 

+ $222

(I apologize in advance for the lack of blood, but think of it as a good movie; it's the anticipation of the hero getting killed that keeps you on the edge of your seats.)

So yesterday I returned from a nice afternoon in the park with the dog (“When are you going to trade WOOF?” he asked me yet again), to find ORLY gapped up $1.50 on news they are being added to the S&P 500. OK, I know you are thinking, “How lame is that?” Lame, yes; but, as you know, the gap triggered the criteria for my risk management plan.

When I realized this morning that they were simply being shifted from the S&P Midcap 400 to the S&P 500, I put the fifth of bourbon back on the shelf and kicked back with some Chai tea and my smoothie, because that would imply that the index funds required to buy ORLY would then be balanced out by the index funds that had to sell ORLY, and the shareholders who found their ORLY up over a dollar a share at the open would likely follow Jim Cramer’s advice and take profits. So, I decided to follow Velez’ advice as outlined in Tools & Tactics, waiting 5 minutes before taking any action.

My husband and I agreed to a compromise in which I would cover half the position if the price broke above the morning’s 5-minute high, and hold half until the price reached an oversold condition on the 30-day chart. Otherwise, I’d simply hold the entire position until oversold on the 30-day. This ability to calmly compromise is one of the reasons we’ve been married (and best friends) for almost 25 years.

Offered 36.60 HANS on open, and didn't even come close before falling hugely from 36.30. Well worth chasing, but I was busy watching ORLY like a hawk.

I thought I had a 7.50 target entered for my FAZ call, but later found out I did not. I entered an order later for what I thought was 7.50, but was actually 6.50. Oh boy, filled for a whopping $40 gain, what a waste.

I can’t short NFLX, so I looked at MAR $45 calls, no premium value left. Sold 5 APR $45 calls @ 1.35. Just looking for a day trade on this one, because the 40% short interest will likely keep it propped up for a while. Set a profit target of 1.15, filled late in the day for a $100 gain.

Short BKE @ 30.38 overbought, SPY overbought. Trailed a stop, stopped out b/e. Quite a spread on that one, should’ve simply kept a mental stop, because of the spread. It was actually a very nice short had I stuck with it.

Short FDX @ 46.11, totally oversold, but looking weak as it prepared to bump its head against the 10-period SMA off oversold. Covered @ 45.85 for a very quick $130 scalp. I sometimes try something totally different, because I want to build confidence trading more than one strategy.

Missed some GS entries today (very fast mover), all worth chasing.

Later FDX was kind of jumpy, but I wanted to get short, so I entered a limit that misses by pennies before it falls the rest of the day. I just never know when to chase, but I need to remind myself that’s what stops are for.

Overall, a very unproductive day for me; I need to aggressively trade ALL my signals.

 

7, thank you!

I want to comment on your P/L post today. I've been there often, and what I've found (and still can't manage to do most of the time) is that when you're wicked out of a trade, stick with it. Today I had that happen with BKE and I should've stayed focused and got right back in, because I knew the setup was solid. But instead I just move on to something else.

Perhaps you could try trading just one stock all day (like I did recently with HANS). Take all your signals and stick with it. You are bound to catch at least one very good move to make up for the little shakeouts that might occur. Better yet, you might catch several good moves.

One more suggestion: Do not let anything that happened today change the way you trade. Every trade is fresh and anything can happen. Expectation is a trader's worst enemy, and it is still my worst enemy, every single day.

(Mistakes however can change the way you trade, no doubt!)

 

this is a good line of work for you..you have great discipline ...

 

Hi ND

Speaking of the FAZ and FAS,

what is your opinion on the FAS- it took quite a fall today.. perhaps some upside tommorow?

 

QT, first time I came even close to trading FAZ was that small options trade. Actually I am ready to take the GS plunge, mainly to the short side, but possibly both directions. Unless I have something in mind, I usually wait for the first 20-30 minutes to tell me what to do.

moonlight, thank you, but I have a ways to go yet. Getting there, headache by headache

 

Hi There ND-

I have a question for you-

You often mention that you place entries on overbought/oversold conditions

I'm curious about what exactly you look for to determine when a stock is overbought or oversold-

I've noticed that RSI is not necessarily all that dependable by itself- I've seen stocksblow out the RSI from 80 to below 30 but then barely eek back up a fraction of the previous drop and slowly trend lower from there.. all while the RSI creeps back up to 50.

Could you elaborate on what factors you like to see, and what will convince you enough to make an entry?

(what you look for in indicators/price action/trendlines, etc)

Thanks

 

QT, I look for short entries when the %K stochastic line (green on my charts) moves above 90, and I look to exit when it moves below 20. If I were going long I'd look for entries below 10, and exits above 80.

This allows for a tight stop above or below the top/bottom of the bar where the price pivoted (unless you're looking to hold for a swing trade, in which you must choose your plan accordingly).

If I'm looking to scalp a move against the trend, I'll use a trend line for an exit point, or I'll use the 10- or 20-period simple moving average; both work very well at predicting intraday pivot points.

Stochastics are an especially strong indicator when combined with lower highs, or higher lows. They are of no help in a strong trend; the line gets to overbought or oversold and hangs out there, while the price may not pivot at all in your favor, no matter how much you think it should. This is the danger of trying to pick an initial top or bottom when countertrend trading, so use tight stops unless you want to risk large losses. (Been there, doing that.)

A good chart to see stochastics in action is on page 45 of this journal, the 2/3 post with the IDCC chart.

 

Thanks for the info ND-

I'd love to see a screenshot of an entry setup sometime where you point out what you're seeing and acting on

Also, having the time of entry in your journal trades would be helpful- so i can look up the chart myself


thanks again