I ran out of time this week and I had two plays that I wanted to post. My first play is from Thursday in TEVA, which was on my long daily list because its daily buy had triggered Wednesday. I’ve notice that if price does not stay above its prior day’s closing price its weak and that I must rethink my bias on the stock. TEVA opened above its PDC but could not remain above as price rolled over and headed lower. I’ve noticed that when my longs go short, they really sell off hard. Reason being is we all read the same charts and if I think it’s a long, I’m sure many traders think it’s a long, but when it goes short, it creates panic selling as traders unwind their positions causing the stock price to plummet. The price action was so weak that TEVA could only rally enough to create two small green doji style bars and as the second bars low was taken out I began my short @ .88 cents. 15 minutes later price created another two doji style bars and as the low of the second bar was taken out I added more shot to my play @ .64. 45 minutes later I had covered 1/3rd of my shares at my first target at .28. Over the next 90 minutes I had one add and reduce area where I added shares short @ .25 and reduced my stop to .38 cents. Soon my next target @ .07 was hit where again I covered 1/3rd of my shares. I finally trailed out of the play near the end of the day @ 51.00. A great play that got the job done on Thursday…
On Friday, I had a nice play in TGT which came off my 9:45 am wide range bar list. My entry came near 11:30 am reversal time as TGT triggered a 15 minute PSS. I entered the play at .03 and then watch for the next 30 minutes as price went sideways. I noticed that price could not move higher as TGT put in two small doji style bars, so as price started to head lower, I added to a full lot size short on my play, again @ .03. Now, price headed lower nicely hitting my first target @ .73 and my second target .69. I attempted to add and reduce on the 5 minute chart at .65 but was soon stopped out at a break even on my last remaining shares at .81. A huge play that took some patience to develop but I was rewarded at the end of the day.