Head fake over lunch leads to two great plays for TraderHank

Posted on May 20, 2014 by TraderHank
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As the market broke out over lunch time and then rolled over hard I was able to find a great short setup in JPM.  Price action in JPM took off like a rocket into lunch time breaking yesterday's high but then price put in a topping tail bar on the 15 minute chart. JPM then triggered a 15 minute sell off an area of major resistance just below its PDC.  I shorted JPM @ .84 full share size as the market started to sell off and head lower. JPM retested the highs again but did not come close to my stop and finally headed lower where I took targets covering 1/3rd @ .69 and the rest @ .74 & .76.  30 minutes later JPM was triggering a 2nd PSS at its PDC that I entered short, again with full share size. This time the drop was less painful and I was able to hit my first target @ .71 and a 2nd target @ .61 where I covered 2/3rds of my shares.  I trailed out of the play @ .68 as the overall market had reach its area of major support.  A great trade on this very tricky day of trading...

JPM 05202014
JPM 05202014
Posted in 9:45 Wide Range Bar Plays | Tagged , | Comments Off on Head fake over lunch leads to two great plays for TraderHank

Easy does it for TraderHank in T

Posted on May 19, 2014 by TraderHank
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  Typical Monday around here lately, nice and boring but I did happen to find a play in T which I found on my gap down list.  I scored the gap as a Tier II gap, it could have been a Tier I if the market was not also gaping down.  I needed a legit entry in T for me to enter the play which came near 9:35 am reversal time.  I entered the play first @ .15 cents with light shares but soon found myself stopping out of the play @ .25.  Then T triggered a 2nd sell that again I shorted @ .20 cents but this time price started to fall nicely.  Then, price put in a green topping tail bar which gave me a clue to where to add to my play and as the green topping tail bar was engulfed by a red bar I added to my play @ .06.  I covered 1/3rd at my chicken target of .00 just in case price were to bounce from this whole number area.  I ended up covering more near my 2nd target at .83 cents and covered more @ .91 cents.  The goal now was to find an add and reduce area which came 12 minutes later as I added shares short to my play @ .94 and reduced my stop to .06.  Price again moved lower rather nicely and I was able to take profits again @ .80 cents, then a huge green bar appeared and closed, but price soon faded again lower so I decided to reduce my stop to just above the green bar @ .94. My longer target was @ .35 cents and I was hoping to hold the play throughout the day but this was not going to happen as my position was soon covered @ .94  Overall, a great play first thing Monday morning…

T 05192014
T 05192014
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Stop out in CSCO and a simple reason why…

Posted on May 15, 2014 by TraderHank
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I’ve got to admit that I’ve been hot lately and not had a losing day in weeks but today I ended the day down about 1/2 of a risk unit.  Which means if my risk was $100 per trade I’d be down about $50.  Not a bad losing day but I wanted to show you how this losing day could have been avoided.  I took a 30 minute buy that triggered in CSCO, but I failed to notice that the 60 minute chart after 2 green bars to the upside closed with a red COG bar.  After a red COG, a trader should be expecting another red bar lower, but there I was taking a 30 minute buy setup long.  No need to guess what happened, it’s almost predictable, I was stopped out, Ouch!  I’m sharing this because I’ve made a big deal about this in the past, under normal market conditions, we get 3-5 bars up and then 3-5 bars lower, so after a series of green bars and you finally get a red bar, you should be expecting another red bar until you have 3-5 lower bars.  Sounds simple and it is…

CSCO 05152014
CSCO 05152014
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STI short does the job for TraderHank

Posted on May 14, 2014 by TraderHank
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  What a mess the market has been yesterday and today.  I had a scratch day yesterday with two attempted trades that I managed to get out safely due to “no follow through” NFT.  Today price action looks about the same which makes trading very difficult and especially when I had no gaps on my list this morning.  My plan B is always my 9:45 wide range bar scan that supplements my trading list and this is where I found STI. Price in STI formed a beautiful red 9:45 am wide range bar to the downside and then triggered a text book short with the markets first PSS.  Even though STI trades rather lightly, I went full share size @ .16 cents with a target @ .03 cents.  Price moved down rather quickly but the way STI trades, the 20 minute trade seemed like hours and when I hit my target I did not feel like sticking around to see if I could add and reduce to my play as the market was bouncing form it’s lows at 10:30 am.  I took targets at .06 and .03 and finally trailed out of the play at .05.  Price then rolled over and made what would have been a great add and reduce area, but the way the market is trading today, I have little guilt for not continuing my play in STI.  

STI 05142014
STI 05142014

    

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The flip off method and don’t be so obvious methods used in shorting PEP

Posted on May 12, 2014 by TraderHank
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The market gaped into resistance at the open making it very hard to trade long and everything I had on my list today, had little room to move higher, so I found myself just setting on my hands until I notice PEP giving me the finger on the 60 minute chart.  I learned this from one of my instructors, Dustin Tibbitts, when the 60 minute chart gives you “the Bird” or what looks like the middle finger, it’s over to the upside.  So, when price hit the area of the PDC I expected the buy to fail and when it did, I went short full share size @ .09. Price went lower rather painlessly, as a newbie trader I would have attempted a long, but this is another lesson I learned from a guy still teaching at Pristine by the name of Sami Abusaad, and that is not to be so obvious.  The obvious trade would have been a long in this area of major support but after getting the finger and remembering not to be so obvious, I just had to took the play short.  I was rewarded handsomely as price moved quickly to my chicken targets of .00 and .95 then PEP fell in a flurry and hit my first real target of .84 cents where I covered shares for more profits.  Price then formed a green bar after the last flurry lower then proceeded to be engulfed by another red bar (GBI) where I added back shares @ .77 and reduced my stop to .93.  Price then headed for my second target of .64 cents where I covered 1/2 of the shares that I had left, after the add and reduce.  Soon after I decided to trial out of the play at .82 cents as the hourly buy in PEP had triggered.  A great trade and a play that I could see the future happen, before it actually happened, wow!   ESP…  lol

PEP 5122014
PEP 5122014
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Short play in LLY caps a nice profitable week for TraderHank

Posted on May 9, 2014 by TraderHank
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Tricky Friday with the market testing the lows from yesterday and attempting to rally then rolling over again.  Hard to figure out which way were going which lead to my scratch short trade in XOM that finally went to its target as the market started to rally higher.  My next attempt lower was in LLY as price was breaking down as the market rolled over.  LLY triggered a little sell on the 5 minute chart but there was little void back down to it's prior base @ .84 cents.  Price retested the prior low and closed with a small green bottoming tail bar, negating any thought that price was heading lower. Overall, there was a big void on the 15 minute chart but price would have to break down below the .84 cent area before I felt a short would work.  The very next bar after the bottoming tail was a red igniting bar that took out the low of the bottoming tail and our .84 cent area.  I was short below this bar @ .74 cents with my stop @ .92.  Since I had a few more shares that I wanted as far as risk I covered a few at a smaller target @ .66 and soon my first target was hit @ .55 cents.  I had a longer 2nd target @ .29 but price put in another green bottoming tail COG bar and I trailed out of the play on the next higher bar. A nice little quick play resulting in a one risk unit gain, I'll take it on this Friday that caps one fine week of trading...

LLY 05092014
LLY 05092014

   

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Gap N Snap play overlooked this morning but made good this afternoon…

Posted on May 8, 2014 by TraderHank
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My other play of the day came in LVS which was on my down gap list this morning 15 minutes prior to the markets open.  I had it as a Tier III gap down but upon looking at the play this afternoon, I could have play it long from the open as one of Pristine’s Gorilla play’s known as a Gap n Snap play inter-day as price setup a beautiful 123 entry long on the 5 minute this morning.  

5 min LVS 05082014
5 min LVS 05082014

   As the market was starting to roll over I was looking for a short play and since LVS was setting up at it’s prior day close, an area of Major Support, I found my self entering short @ 76.79 with a small share size as the 15 minute sell triggered.  Within minutes I was already up .40 cents on the play as price sold off hard with the market.  I had my first long target @ 75.66 where I covered my shares only to watch LVS go to 74.27, Ouch!  Anyway, I still got a full dollar out of the move, I just wish I had a larger share size.  My batting average has been about 50% but what has improved is my ability to reach the longer targets which is key for profitability.  I have to give give credit to making sure I have a tradable  void on the 60 minute chart while scanning for my daily plays.  You have to check your lower time frames to make sure you’re not trading into a “Wall of China” or an area of consolidation that looks more like a bed mattress with price having little chance of moving through the area to your longer targets.  I’ve made it a priority that all of my plays need to have at least $1-$1.50 void in the direction that I want price to go or I leave it off my list.        

LVS 05082014
LVS 05082014
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Tier II gap play in COST

Posted on May 8, 2014 by TraderHank
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  My first play of the day came in COST which I found on my gap list as a Tier II gap.  I also had RIG on my list as well but when you looked to the left on the chart of RIG, there was no support anywhere near where price was gaping to. With COST you could see overlapping bars to the left and I knew that once a buy triggered, COST would most likely hold the area.  Here are the 15 minute charts for comparison…   

RIG 15 minute
RIG 15 minute

I felt that a long setup in RIG would most likely fail because of a lack of support and price was already selling off.  Now here is COST…

COST 15 minute
COST 15 minute

Looking left you can easily see overlapping bars to the left which will act as a support area on any setup and as you can see by the bottoming tail left behind as the first 15 minute bar took off like a rocket. I took the first 1 minute buy with a full share size @113.24 and price, in a flurry, hit my first target @ 113.70 and sold 1/3rd of my shares.  With the help of the market, COST continued to power up to my 2nd target where again I sold 1/3rd of my shares @ 114.29.  It took a little while but as we were heading into lunch time on Wall Street my 3rd and final target was hit @ 114.68, wow! What a play, when everything is working it’s like shooting fish in a barrel…

COST 05082014
COST 05082014

    Well if you want to see what happen in RIG today, here is the chart, I know of many Traders were stopped out on this long play today…

RIG 5 minute
RIG 5 minute
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OMG play in TWTR

Posted on May 7, 2014 by TraderHank
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I had one of these homerun plays short in TWTR this morning.  I found TWTR on my gap continuation list from yesterday and honestly the first 25 minutes seemed like an eternity as I found nothing to jump on short as the market was selling off hard, but then I noticed TWTR consolidating making higher lows but not making any higher highs and as 10 o'clock reversal time neared price was going to trigger a sell on the 5 minute chart.  As the market was starting to sell off hard I decided to go in full on my short play that triggered @ 31.36.  Price moved down rather nicely with a flurry and as the market continued its hard sell off, I thought TWTR had a good chance to hit my first long target @ 30.28 so I place my order to cover my entire lot at 30.31 a full dollar and .05 cents away, basically a 4 risk unit trade.  I just held on and kept the entire lot on and bingo target hit 25 minutes later, wow!

TWTR 05072014
TWTR 05072014

  

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Wide Range Whippy Bars

Posted on May 7, 2014 by TraderHank
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  Check out the price action in HUM today, at the open price was wide an whippy taking out the prior days low and taking out everything to the left above.  What this does is it takes away all the potential buyers short and sellers long and clears everything out for a move to take place.  Once price stabilized and started to move up, there were no sellers to contend with, they had already sold during the first 15 minutes of today.  As you can see price moved up like a rocket and the only sellers were the buyers taking profits on the way upward...  Wow, what a move and a great tip here for all Traders...

15 minute chart of HUM 05072015
15 minute chart of HUM 05072015
Click on chart to enlarge   
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