Well, PAYX was not really a revenge play, I guess when I was a newbie I would of wanted revenge after being stopped out on the play. Now I’m a bit more seasoned and I attempt to replay my plays if and when they legitimately setup again. I had PAYX on my long list because of yesterday’s wide range bar but when it sold off hard at the open and setup short early on the 5 minute chart under it’s PDC I just had to enter the play short @ .53. As price continued lower PAYX formed a green topping tail bar near the low of the day, as price took out this bar forming another red bar to the downside and since there was a huge void lower, I added to my play and went full share size. I was quickly rewarded as price hit my first target @ .44 where I covered 1/3rd of my shares. Soon after PAYX rallied hard taking out my stop on my last 2/3rd shares. The stop out was the kind that you always want, almost even, no revenge needed on this play.
PAYX 05012014
At 11:15 am I switch my focus to the 15 minute charts and I found PAYX setting up another sell just under its PDC. Since this was the 3rd time testing this area, now an area of Major Support, I shorted PAYX on the trigger @ .68. The market had also put in a red topping tail bar on its 60 minute chart so I was convinced that the market was going to sell off over lunch time. As the overall market moved lower PAYX moved lower as well soon hitting my chicken target area of .50 cents where I covered a few shares and finally hitting my first major target @ .43 cents where I covered more shares leaving 1/3rd left looking for an add and reduce location. PAYX then put in two smaller green bars that was engulfed by a red bar where I added more shares back and reduced my stop to .46. Now having just as many shares that I started with and profits already in the bank I was looking for a longer lower target of .06, wow, if PAYX makes it. Well, I covered 1/3 at the prior low of .33 but as the over all market continued lower, price action in PAYX started to move sideways. I held to the end of the day with little luck on my last 2/3rds and finally covered into the close @ .38. Overall a nice 2 R trade even after the loss on the first attempt, a nice revenge play if you ask me…
PAYX II 05012014