Spyder: One question (as I mentioned above I've been away for a bit but now I'm back). I understand what to look for in terms of finding the Bruno R list. My question is: I'm very comfortable w/ the intraday entry strategies of the dry up list. Is your entry criteria during the day (timing, volume, etc.) all the same as the dry up stocks or is the entry criteria different. If different I can take the time to look back at the other entries (no need to repeat); just wanted to know whether I needed to. Thanks Mike
The best way for me to describe the entry criteria for Bruno R Stocks involves showing you a two day chart (30 min fractal) for NDAQ. See the attached chart. Notice on Day One, we see improved price right at the open (blue arrow), yet we see relatively low volume for NDAQ. The LBDU levels for NDAQ held at 310,00 shares yesterday, but NDAQ showed a price improvement of +.61 on only 60,000 shares (pink arrow 1). Notice also how NDAQ stays almost entirely within the intermediate term channels (green lines drawn in Monday Night). On Day Two we see price improve significantly in the first candle (orange arrow), and we also see a significant difference in volume (pink arrow 2). Both days appear similar at the outset, so how did I know to stay out on Day One vs. Entering Long Day Two? If we look at the Stochastic Indicator for both initial candles on both days (red circles) we see a similar pattern here as well. Our answer, must reside elsewhere. If we look at MACD Histogram, we see Negative Levels on Day One, and Positive MACD on Day Two (Dark Green Circles). We also have higher volume levels on Day Two. We know from Jack's many posts that Volume always leads price, so when you see improved volume with improved price with a positive MACD and upward diverging Stochastics, you have an increased likelihood of entering into a profitable trade. One might question, how did I know all this in real time? Simple. I had monitored NDAQ on Day One. I noticed a big price increase on low volume (again compared to LBDU levels) and decided Price could not sustain its run on such low volume levels. The market agreed with this assessment and price fell lower. Since NDAQ followed the trendlines so closely, I assumed Price would test the lower trendline at some point before preceding higher, so I set a limit order for 200 shares at the $39.50 price point. After receiving a fill, I monitored volume and price to insure the rate of both price and volume increase showed improvement over the previous day. Later The LBDU and Average Dry Up Volume levels simply became 'confirmation' levels that volume was progressing as anticipated. Normally, I would sell the shares when price breached the upper trendline, however, NDAQ gave the appearance that it wanted to break out beyond the trendline, so I decided I should hold for a while to see what the future would hold. By the end of Day Two actual volume had exceeded the previous day volume, and as price also had improved, Jack's Jokari window indicated I should expect the trend to continue. As a result, I still hold 200 shares. The difficulty in attempting to 'catch the turn' with Bruno R set ups stems from not allowing enough room for price to move within the channel before jumping in. I had this problem with REDF last month. I simply entered into the trade a day early while price continued to fall. The next day (after I stopped out) price rocketed higher. I recommend trading small share sizes with this method until you 'see' the ebb and flow of the individual stock's cycle. Keep your losses small (I use a stop offset - purple line), and be prepared to take a few losses minutes before price rockets higher until you get it just right. This method contains a bit more art than science to it, but hopefully, the above explanation provides some additional clarity. Good Trading to you. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1030827>
I bought 200 TASR this morning at 10:05 for $11:01 after it made the signal. Held it all day, missed the close so will be selling because did not make FRV. Did anyone trade this one too? gooch87
Spyder: Thanks for the explanation on your Bruno R entry. I appreciate the time you took coming up w/ the answer. Very informative. Mike
Yes, I got into TASR at 10.97. In my testing getting out on the next day open after failing to reach FRV generally produced better results
gooch, I haven't been trading TASR with this method, but I noticed it maybe a month or so ago when a cycling stock scan I developed put it on my radar. It was cycling darn near perfectly and I mentioned it on this board. Right after I mentioned it it had the latest slightly more protracted correction. I attached the chart that caught my attention with some indicators that I use to spot cycles. One thing I liked quite a bit was the way volume was cycling along with the price movements. It looks like it started doing that in sync with price again. It seems like it recovered and is now cycling pretty perfectly again. Nice grab, though not strictly a current member of the 'quality universe'. Nice trade. -ace
I might not be so quick to off this stock tomorrow. It looks pretty good to me, Check out a longer term chart and see a 'cup and handle' formation. If I owned it, I might consider holding a few days based on the rising indicators circled below. See attached. - Spydertrader <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1030876>
I don't usually trade so low priced stocks, but I think that TASR looks pretty good for a long entry. I'd expect to enter on a pull back to ~$10.8. There is a long term resistance level just bellow $12, which would allow a profit of about 10%. For those who trade options, the April 10 call (quardb) is almost at parity.
Jack's Jokari Window states: If the Volume trend is UP, then the Price trend will CONTINUE If the Volume trend is DOWN, then the Price trend will CHANGE Price had improved from Day One to Day Two for NDAQ. In addition, Volume had improved from Day One to Day Two. Since the volume trend continued to increase, we anticipate price continuing to increase as well. Even though actual volume levels did not exceed FRV levels by EOD, volume was increasing (compared to the previous day). As such, I decided to hold NDAQ in anticipation of additional price increases tomorrow. Increased volume tomorrow (combined with improved price) should signal a continuation of the same trend. I hope that helped. - Spydertrader