WMT had TraderHank over a barrel this morning…

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  The Pristine method teaches that there are 4 stages to the market, stage 1 is flat, stage 2 is an uptrend, stage 3 is wide and whippy, and stage 4 is a down trend.  In between these stages we have the transitional phases A, B, C and D which are the most challenging times to trade successfully.  Currently I believe the market(QQQ) is in a stage 3 in a transitional phase C heading into a stage 4 down trend.  As I have just mentioned this transition C has made trading difficult over the last couple of weeks.  The really cool thing about the stages is that they always come in order 1,2,3,4 along with the Transitional phases A, B, C, and D, they never occur out of order.

Since the market has been more difficult to trade because of what I just mentioned in the above paragraph, I decided to show off my textbook looking losing trade today which came in WMT this morning.  I had my WMT on my list as a 9:45 wide range bar play but it should have been left off my list because of the large gap up this morning.  It could have made my morning gap list as a Tier III gap but I did not find it until my 9:45am scan.  So WMT should have been on my list and I believe that the PBS that set up at reversal time, 11:15 am, was a good buy to take with my stop .05 cents below my entry bar, but actually, I moved it .03 cents lower to .49 cents because of the whole number .50.  Price action looked good for a while as the market took off upward at the same time as well, but when the market started to roll and go sideways WMT started to bleed lower.  Price action bounced 3-4 times off .52 and looked like it may recover but this was not going to be my day in WMT as finally .49 was taken out by 12:24 pm over lunch.  I took a little over a 1 R loss on my trade but I had some nice trades in AIG and JPM lower this afternoon that took care of this loss.  I ended the day with a small gain and I’m still on tract to end my week and month in the black 🙂  Here is the 15 minute charts for my loser trade in WMT…

WMT 02262014
WMT 02262014

  

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