Pivot High

I had a textbook trade in AIG this morning that really validates the Pristine method of trading and makes your gut feel warm all over knowing that you've really got something, a skill to be proud off.  My trade in AIG this morning really shows off the Pristine method so take note!  I found AIG this morning as a gap up surprise where price had not taken out the prior day's high, but it was close.  As AIG opened, price had taken out the prior day's high which allowed me to legitimately score the gap play as a Tier II mortgage type gap to the upside.  Now, I just had to wait for a proper setup which triggered on the 3 minute chart as a beautiful PBS with bottoming tail.  I was in over the high of the last red bar @ .38 with full share size.  It took a few minutes but price finally started to move on up into my first take profit area of .48.  For some reason, I've been taking profits after .10 cents up on these morning plays where I go full share size and bring my stop to a break even on the play.  This seems to work for me and I've found it easier to stay in the play longer with my other 2/3rds share size.  I soon found my longer target @ .68 where again I sold 1/3rd of my shares, then I watched as AIG faded lower giving me a beautiful second PBS where I added to my lot size and reduced my stop again.  I watch as price just ground it's way upward to my next primary target area of $49.00 where I sold most of my remaining shares @ .98.  I finally trailed out of the play @ .93 as we were heading into lunch time on Wall street, overall a 110 point play and 2 risk units of profit made.  Here is my 3 minute chart on my textbook play in AIG...

AIG 01282014

The Q’s opened the day with a slight gap @ 86.31 and immediately set the low @ 86.30 before drifting higher into 9:45 am when price faded into 10 am reversal time triggering the first 5 minute buy.  Price just rocked upward not looking back and may have just hit the high of the day here @ 3:35 pm @ 87.72.  An impressive rally after yesterday’s hard sell off in the market. 

QQQ 01142014

QCOM 01142014

My play of the day came in QCOM which I found on my list as barely a Tier III bearish gap down.  My initial entry came after a huge rally upward with the overall market and was the first official 15 minute sell that triggered in QCOM.  I felt confident in the play short since QCOM had just rallied 1 1/2 hours straight upward leaving a nice void to the downside, huge risk to reward, relative weakness to the market, and overall just a beautiful setup short.  I entered the play with a small share size, but after the next green bar was again taken out by a red bar, I added to my play going full share size. Price dropped almost immediately where I took some quick profits @ .44 and lowered my stop to a break even on the trade.  I still had nice share size as price hit my 2nd target @ .15 where I covered another 1/3rd of my shares.  With 1/3rd left short, I was looking for an add and reduce location which triggered at 2:15 pm just as lunch was ending.  I was hoping to get some help from the market, but unfortunately, the market remained bullish and QCOM never did give me the climatic drop that I was looking for. Overall a very nice play with 2 risk units of profit made.  Here is the 15 minute chart on my short play in QCOM       

I found CSCO this morning as a beautiful Tier II bullish gap almost a Tier I if you were going to give CSCO credit for gapping over resistance.  My guts told me to play it like a Tier I which allows me to buy almost at the open.  Well, I found myself in after only 41 seconds @ .44 cents full share size.  I felt that price would hit .50 cents but I was not sure if it would make it through this area.  As price hit the .50 cent area, I was able to bring my stop up to a break even on this aggressive play.  As price broke through the .50 cent area I sold 1/2 of my shares @ .54, then price rolled over where I found myself selling a quarter of my shares at .55.  With a quarter of my shares left I held on as price hit my next target of .65 where I sold 1/2 of what I had left and watched as price moved to the .75 area where  I sold a few more shares.  I had ran out of pivot point targets so using the Fibonacci tool I was able to locate the .75 cent area as a target on the 60 minute chart.  With token shares left I waited for CSCO to pull in and to trigger a 15 minute buy, I started to add shares slowly on the 3 minute chart just above .50 cents as I found this area as well using the Fibonacci tool.  I added shares to an average price of .49 cents and also moved my stop to a break even on my last remaining shares.  Unfortunately, price could not hold the area and CSCO has sold off with the market.  A nice 4 Risk unit play made, a great way to start the week on this 13th day of January 2014 🙂    

CSCO 01132013

As the market showed weakness early this morning I found NVDA on my list as a Tier II shock gap to the downside.  Looking for an entry I was able to spot a 1 minute sell setup that I entered short with just a few shares.  Price action continued lower but finally rallied but could not take out my stop at the 16.05 area 20 minutes later.  Price rolled back over and made a lower low before attempting to rally once more but this time price was much weaker and could not get above the 20 ma on the 1 minute chart.  As price again rolled over and made a new lower low, I added to my play and went to a full share size.  NVDA continued to sell off nicely taking out my first target @ .81 where I covered 1/2 of my shares.  Soon price hit my 2nd target @ .72 where I covered another 1/4.  I moved my stop down to above .80 on my last remaining shares and were later stopped out over lunch time.  Total profit was about 4 risk units on the play which definitely made for a glorious Thursday morning…

NVDA 01092014

The QQQ opened neutral this morning @ 86.66 and immediately set the high so far today @ 86.76 within the first 5 minutes of the trading day.  Price action sold off lower into 10 am reversal time bouncing slightly into 10:30 am setting a lower high @ 86.35 before heading lower into 11:15 am, the official start of lunch on Wall Street, and setting the low of the day @ 86.00.  Price then drifted upward over lunch to break out @ 1:50 pm and now price is challenging the highs of the day with 30 minutes left in the trading day and is currently trading @ 86.57…

QQQ 01062014

  My play of the day was in NOV which I found this morning as a Tier III bullish gap up.  Price action sold off hard in NOV until 10 am reversal time putting in a small narrow range bar on the 5 minute chart.  Just a beautiful buy setup triggered on the 5 minute chart where I entered with a small lot size.  Price moved up rather nicely at first and 15 minutes later I attempted to add to my play in NOV but I did not get my fill @ .35.  I left the order in and I was finally filled 40 minutes later to a full share size.  Price continued to fade downward for another 20 minutes before triggering another 5 minute buy where prices took off to the upside.  Soon I found myself taking profits at my first target area at .48, .54 and .61 cents.  I held 1/2 of my shares for my longer target at 80.20 which I was hoping to hit by the end of the day.  As lunch was ending on Wall Street, I was able to raise my stop on my last remaining shares to .61 cents but by 2:35 pm NOV lost it’s bullishness and started to sell off.  I finally trailed out of my play @ 3:35 pm @ .60 cents, selling the rest of my shares.  Wow, a 100 point play, one of my better scores on my first trading day of the New Year.  

NOV 01062014

The Q's opened by gaping to 85.27 and rallied higher to set what looks like the high of the day by 10 am reversal time @ 85.81.  The Q's then faded short through lunch into 1:20 pm reversal time to set the low for the day @ 85.21.  Price has since bounced triggering the hourly buy and the QQQ is currently trading @ 85.44.   

QQQ 12162013

I found my play of the day in XOM as a Tier III gap this morning taking an aggressive 3 minute high entry since the gap cleared all resistance to the left and there really is only one place to go and that is higher.  Remember as resistance is overcome it now acts as support as demonstrated by the price action in XOM.  I sold 1/2 at my first target of .98 and trailed my last 1/2 @ .95.  15 minutes later XOM triggered a 3 minute buy that I bought with full share size @ .17 and selling @ .27, .37, .47, 57, and 67.  Wow, a huge 2nd play in XOM and 3 risk units made between the 2 plays, a great way to start the week before Christmas...

XOM 12162013