I agree with you on the homebuilders. im not daytrading them, I have been short them since the last Dow push up to around 9500. I added on to my shorts about three weeks ago, that one day short squezz that took the dow up 300, i noticed that the homebuilders were not moving to the upside by much...also the daily charts just screem >>>>SHORT ME>........also the sheep and CNBC believe the housing market is stable...another good reason to be short them.
Here are some nice intrday setups that panned out well in our room today........ http://www.stocktrendwizard.com/605potd.htm We had others but these 2 where nice from early going..... I been doing some free posting on my site for swing trade ideas that have been doing pretty good....... http://www.stocktrendwizard.com/charts.htm Wiz
Did not see a lot as I scanned tonight though with INTC warning after hours we will probably see a gap down. Most gaps fill, so I will be looking for buying opportunities at the open. Specific stocks I like: Liberty Media (L) for a buy (daytrade) on trades above $11.10 if it gaps lower than that at the open. Stops will be under $10.99 or the days low (which ever is lowest). Good luck, Brandon
It could be a pretty nice gap tomorrow in the NQs depending on what happens in Globex when Europe opens up. Now I recall you talking a little while back about some gaps not filling if they are more than a certain %. The NQs closed at 1163.50 yesterday, where would be the breaking point for gap fill or no gap fill tomorrow / how big of a gap would you allow before you said this isn't going to fill today? Thanks
4% gaps to the upside have never filled in my study period (5 years) on the day they occur, 4% downside gaps have filled 1/3 of the time on the day they occured. The average gap on the Nasdaq is 1.18% up or down during this period, 71% of "average" gaps will fill. Gaps that are two times larger than average gaps fill much less often. In most cases where there is a low % chance of the gap filling, its much more likely to fill a down gap than an up gap (about 50% more likely). This is a study that includes the last five years of data on every gap that has occured in the Nasdaq and how it responded after that gap. Brandon
[11:39] <Brandon> 10:38:28 SCALP TRADE: (Based on intraday setups. Holding period = several minutes to an hour. Momentum trade. Exit at S&R.) BUY SETUP GZMO above 3.35 Reasons: [11:59] <Brandon> I can walk through the setup and trading it if youd like? [12:03] <Brandon> http://www.tradingfrommainstreet.com/img/gizmo.gif [12:03] <Brandon> let me know when you guys have this up [12:04] <Brandon> ok, Ill go through the whole process here [12:04] <Brandon> I run a few scans during the day [12:04] <Brandon> the ones that I get the best idea's from tend to be the % gainers and losers. [12:05] <Brandon> as a trader you want to be buying strong stocks and selling weak ones [12:05] <Brandon> and the % gainers and losers will turn you on to just those stocks. [12:05] <Brandon> when the market is showing some signs of strength I like I will look more closely at the gainers. [12:06] <Brandon> Today when the news about the nucular gangster came out I was as I noted earlier impressed with how well the Nasdaq managed to hold up [12:06] <Brandon> so this kept me looking more at gainers than decliners [12:06] <Brandon> now [12:06] <Brandon> when you find the gainers you dont simply buy something because it is the strongest stock on the board [12:06] <Brandon> when you do that you can find yourself buying tops very easily as nothing will ever move in a straight line unless its against you [12:07] <Brandon> so you gotta look for proper setups [12:07] <Brandon> and those will occur when stocks REST [12:07] <Brandon> and a stock can rest by profit taking or accumulation when its uptreding [12:07] <Brandon> you will see profit taking as a pullback [12:07] <Brandon> and accumulation as a line [12:07] <Brandon> also when you see the accumulation occuring [12:07] <Brandon> this will be causing a certain bit of volatility coiling [12:07] <Brandon> which is also very good for the stock [12:08] <Brandon> because as we know these volatility situations tend to resolve themselves. [12:08] <Brandon> so now we have determined that gzmo is worth going out on a date with [12:08] <Brandon> and its a matter of waiting for the timing [12:09] <Brandon> everything in life comes down to timing they say [12:09] <Brandon> and trading is not different [12:09] <Brandon> so what you can see in the circled area on this chart is the period of time that GZMO spent resting [12:09] <Brandon> it went mostly sideways [12:09] <Brandon> the last important high in this line was above $3.35 [12:10] <Brandon> now the sale [12:10] <Brandon> its not so important how you buy stocks [12:10] <Brandon> because anyone can buy one [12:10] <Brandon> and Ive never lost a money buying a stock anyway [12:10] <Brandon> it was always on the sale [12:13] <Brandon> remember that as traders we try to be nice people [12:13] <Brandon> key rule in business [12:13] <Brandon> is that if you give people what they want [12:13] <Brandon> you will make money [12:13] <Brandon> and thats how market makers make money [12:13] <Brandon> and specialist [12:14] <Brandon> they sell to buyers [12:14] <Brandon> what you can see on this chart that I have made [12:14] <Brandon> is the swell of price to the $4 area [12:14] <Brandon> and when you see this bar [12:14] <Brandon> it was the biggest price bar of the day [12:14] <Brandon> that usually marks a top area [12:14] <Brandon> and this is the place to sell this stock
[13:22] <Brandon> 13:22:34 DAY TRADE: (Based on daily and intraday setups. Holding period = several minutes to several hours. Closed by end of day) SHORT SETUP SMH can be taken short under $34.70 with stops above $35.25.