Wednesday, April 06, 2011

Trade review 4-6-11

I got some of these selections right today...



A perfect play and one the student should note. A multi-day greener nominally gaps up, falls immediately, going green to red about 10 minutes in. It falls deep and hard all morning. Subsequent bounces fail to retake the flat line, so it wins. Closed south by over 7% today. Usually, days like this are best to wait for on such plays, if the incher stock has already advanced a lot for a number of days.


Another LEXG of sorts I missed the run up on, this one yielded our hoped for 2nd day gravy down side. A sizable gap down began reddening at once, falling in the morning and almost recovering the flat line later on, but closed weak to end the day south by over 11% today.


Another easy one for shorts with reasonable stops. Opening on a gap down that filled at once, going red to green briefly, this one reversed to red yielding the fade entry we aimed at. It returned positive, but the high did not take out the daily hod or the previous session high, then it fell back under and never looked back, closing down over 6% today.



This looks like a win, but it's a loss. Why? Well, it opened on a gap up, which soon filled, going red. So far nothing strange. I was long biased, and it then powered green early on, yielding an entry signal for the Bulls. But it gradually fell later on, and went red AND printed a NEW lod, which would have shaken out several longs, since the previous session one was too far away to use in practical terms. So, it must be listed as loser.



I'd love to be able to claim a win here, as it looks like one on paper due to the positive finish. However, I cannot due to my usual honest reporting of my results. Opening flat, it never greened, holding just under the flat line and eventually going down a bit more, most of the day. A very strong close made it go green near the highs, to end up over 2% today. Most longs would have avoided entry/kept flat by then, if following my rules.


Once again, this one is a push because it never weakened, opening on a gap up which soon advanced, then spiked hard north. This beast has been having a great run, if it continues it might show up on a Supernovae scan soon. Actually, it already is one with a 5 day return, but does not show up on my filter and charting service because the stock is not in their database yet. Closed up almost 80% today. A no play as I outlined.


Another no play push as this gap down advanced immediately, printing the lod in the initial noise candle. No weakness cues or selling pressure to fade into, and I was short biased and avoiding longs. This one kept going most of the way, closing off of the highs but still green by over 10% today. Many "losses" can be avoided if you wait for cues to enter a play, especially as a short. The live price action from the gun can often tell you to remain in cash, aided by following simple rules. Daily doji print by the end of the day, a stalemate situation.

My unofficial plays went as follows: DRMX opened on a gap up near the hod and dumped at once, going green to red and it never looked back, closing down over 67.5% today, for the winning pick. DYNT opened flat and just dumped, it did not challenge 2. I mentioned this possibility, but it fell too hard on the 1st 2 candles to get a good immediate entry, the bounces never greened, but even that was mostly a wash given its closing price. It ended down over 8% today. I consider it a loss as I was mostly long biased, and the fade was hard to enter properly where a profit would have been made. So these 2 were a wash, basically.

Daily record: W-3 L-1-P-3


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