I really had a homerun day of trading on Friday with 3 really nice trades to share. My first trade came early has the market sold off hard into 10 am reversal time triggering a mini climatic buy setup in the market. I was a bit hesitant on the play looking for the final puke out on large volume. Volume finally spiked a bit on the 1 and 2 minute charts and since the entry came after a retest of the area I went in full share size with my target back up to the 20 ma. This is a counter trend play so I’m not planning on sticking around for a long time, so as price came with in about .05 cents of my target I sold my entire lot. My gut feeling from this point was that the market was going to continue lower and it did soon after.
My next play was in UAL which made my 9:45 am wide range bar list. My entry triggered @ 10:30 reversal time and I entered short @ .96. Price consolidated for another 30 minutes making two higher low bars on the 15 minute chart. When the last bars low was taken out I add more shares short to my play @ .88 cents. From there, price cruised lower without much of a fight hitting all 3 of my targets @ .65, .45, and .09.
My last and final play was a shock gap in NKE that made my list just before the market opened. I rated the gap as a Tier II mortgage type gap and I was kind of disappointed that I missed the opening selloff but I was patient and entered my play short as NKE triggered a 15 minute PSS. I took the play short on light shares looking for a little more confirmation that we were indeed heading lower. Price headed lower nicely for 15 minutes then a huge green bar appeared taking out the last 30 minute of trading. At this point I was not sure the play was going to work but as price started going sideways I notice that price was weakening and after about 45 minutes I went to a full share size on my play short in NKE. As the QQQ’s started to break down again, NKE finally gave up the ghost and headed lower hitting my first target @ .29 and my second target at .03. I trailed out of the play @ .20 only to watch price head much lower. Overall a great play short, I just need to leave the play on until the close of the day next time.