Pivot High

The market(QQQ) gaped at the opening today above the last hourly red bar from yesterday's close @ 66.76 and immediately set the low of the day at 66.61.  The Q's just rallied all day long setting the high of the day by 2:50 pm at 67.67, then the Q's finally sold off breaking the 5 minute uptrend to close the day at 67.47.  A trend day in the market which can be difficult for even the most astute trader.   

I took 4 trades today, after the 3rd trade I was down about 3 R and was just about to turn the computer off for the day when I saw a beautiful 15 minute buy setup in XOM.  I found XOM on my gap up list this morning as a Tier III gap which I could only play as a 15 minute buy setup according to my trading plan.   The entry came at 12:45 just as the market was breaking to new highs, I had a nice .10 cent stop and I went full share size, XOM did not disappoint and rocketed back up breaking above it's prior high set at 90.09 a full .43 cents where I sold 1/2 of my shares.  I took my last 1/2 shares at 90.11 as I trailed out of this beautiful 4 "R" trade.  I ended the day up about 1 1/2 "R's" for the day, not bad on a day that I thought was over...

xom02052013

My next play was in JCP which I found on my gap up list gaping over a small little doji style red bar.  Unfortunately I did not get the first 5 minute entry but I did catch the next two 15 minute entries which took care of my loss in NTAP and had me profitable for the day.  

jcp01292013

The Q's opened at 67.06, a slight gap down to the prior lower pivot area on the 15 minute chart, then price sold off until 9:40 and pulled back and triggering the first 5 minute sell setup for the day by 9:55 am and priced moved lower taking out the low of the day and setting the low @ 66.63 by 10:05 am which was a major support area from Thursday of last week.  Price then rallied to break out above the high of the day set at the open and started to base sideways over lunch at the 67.21 area.  Price finally broke out to new highs on the day at 3:10 pm and set the new high of 67.37 by 3:30.  Price then sold off into the close and the Q's closed at 67.32 an area of major support.  

My first trade of the day was just a complete disaster in NTAP which I found on my gap down list gaping to the lows of Friday's.   I made the mistake of entering on the 1 minute low and instead of placing my stop, I accidentally added 3 times the shares that I risk sized for.  I sold 2/3rds of the shares to get my risk size down but then price rocked upward and I did not have enough time to have my hard stop in I was was forced into a 2 R loss which was not a great way to start the day.  I attempted another short at the 2 minute sell setup, but again price ran over me and by the time I was out I was down over 3 R's  Ouch!  Price continued to move upward to a climatic level above Monday's closing base and up to the highs.  I shorted again off the two minute chart after a bottoming tail failed to move higher and the 5 minute sell was setting up.  I finally got a reprieve as price moved lower nicely.  I was able to pick up 2 risk units as price moved lower, I finally sold as price had retraced 50% and had put in a bottoming green bar.         

NTAP 2

 Always dance with the one that brought you, so when NTAP setup a 15 minute buy, I was all over it.  I was patient on my entry, price started to move up nicely putting in a nice 1 minute pivot where I should have moved my stop, this would have been a break even from then on.  Price soon rolled over on me hard with no recovery in site even though the entire market was breaking out two new highs, ouch!  I've seen this pattern before as price moved back down to 1 penny lower then my stop, price then shot back upward where I thought I'd be ok but no, price came back down again to test this area. At this point, I recognized the pattern, with such a drop back down into this area from the break out that triggered the 15 minute buy is now going to act like major resistance, and the next time price moves into this area, there will be sellers waiting.  I decide right there that I would sell at my break even which is about the middle part of this area at .70 cents.  Well, I finally got a reprieve as price shout back up through .70 cents, I sold and as I predicted, price rolled back over and has since moved lower.  Time in the chair has saved me on this one...

NTAPII01282013

NTAPII01282013

 My next trade was in NTAP which I found on my gap up list as a little novice but this is the 3rd day up after a 4 day daily consolidation, so I felt it was ok to play long.  My entry was the first 5 minute buy which looked great at the time coming off the 8 ma.  I usually will wait to take it off the rising 20 ma but I kind of jumped the gun on this play and had to set with my butt puckered a little longer then I had hoped.  Price finally corrected with the market and moved up higher to an area where I sold 1/2 of my shares then moved back down for two bars and pivoting so I added some shares back and brought my stop to just below this area.  Price then went sideways breaking out finally back up to the prior high where I expected price to move through this area, but it did not, price action rolled back down and finally stopping me out of my final shares just before lunch.  The play looked promising but the outcome was only 1/2 R in profits...

ntap01282013