Ofcourse, it is hindsight as I didn't watch GNTA today as it happened....but I am always leery of going long a stock that gaps up without breaking up and out of its HOD. The next thing I noticed was that the volume dried up right after the open and except for the spike at 10:09am there was no fuel for a long position. BTW when the volume did spike there was no pattern on the chart that would have led me to go long either (it was a V pattern). Those are my thoughts but I'm curious what Tony thinks. Hope that helps.
I had to run after work to talk to a tax guy. So now I am tired, quick rehash. Four trades. three in psft off bottomfisher. A stock that I have made money trading in past. first entry was after it looked like we put in a bottom in the spx (futures)s and the ndx was actually strong. Stoped out for twenty cent losses twice made it back and a little more on a buy out of consolidation. Lost $2.60 on accredo. when market looked sick I got out after a winner turned into about a scratch. Tommorow I will be more detailed if I see good trades. Discipline OK on 3-4 trades Stock selection c-b considering enviornment good trading Still on down days I am sticking with what I know.
no trades today. when I missed the run up and thought I would wait for mid day consolidation but then the market looked weaker so I just traded my usual stuff. had to dig out of a big hole I thought I was long but I was short. Had a good afternoon but I did not make it all back. I must have been tired today I actually made two mistakes.
Short AMGN Entry: 51.96 Stop 52.19 Target 51.05 I thought this might be a reversal. Instead it turned out to be a pullback. I got stopped out. I should have at least waited to see if it broke the trendline before entering, which it didn't. I also should have noticed that there was a lul in the volume. Short QCOM (Bottom Fisher) Entry 31.01 Stop 30.20 Target 29.35 Again, I thought this was a reversal. Traded up from open. Traded down. Pulled up and started trading down. I got stopped out. I should have noticed that the trend line had not been broken, volume had tapered off and the futures were still trending upward. Short AMGN Entry 52.65 Stop 52.85 Target 51.05 Yep, Did it again! Well, it had traded down from the HOD, traded up and started down. I got stopped out. It was not a severe enough move, did not break the trendline and a lul in volume. When will I learn? Here's what I learned today. 1) Look for long plays on days like today. 2) When going short, look for volume to confirm. 3) When going short, look for stock trading up from open, then pulls back, then trades up not breaking previous high and then starts lower. 4) Make sure that the up-trendline was violated. Criticism welcome. - I deserve a beating. Mike
I do this sort of thing on occassion. . For me it stems from having some sort of subtle bias about the day , not good, end up on the wrong side of the mkt all day. I don't know why I do it, stubborn, asleep at the wheel, brain fart,don't know. Nothing pisses me off more than to look at it from the perspective of the days end and see how obvious the action was with me fighting it all day. Very frustrating.
Banjo, Glad to see that I'm not the only one that is brave enough to publicly admit this. I think that my reasons were I missed some fast moves up, and I thought that the rally would not last. My bigest mistake was going contrary to what the market was telling me. Luckily, stops were tight and losses were minimum. Reflection on the day helps. I really beat myself up for my mistakes. Hopefully I have learned something without too much pain. Mike