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Wednesday, January 17, 2007

MLS - 011707; 15-minute chart

posted by Tom C:

This was another set-up with a few red flags - a really wide-range 1st bar, and an entry below the OR high.

But I liked the pullback from the high of the morning - the bars narrowed in range and it was nice and orderly. The 7th bar hit the rising 5MA, and rallied to close strong. I entered on a break of the 7th bar high, and held until the end of the day. The total gain was $1.25.

Note - the long lower tail on the 17th bar appears to be a bad tick as my stop was not triggered.



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12 comments:

greytrader said...

Nice trade. Why and how does your chart start at 11:15 ?

Prospectus said...

There are so many layers upon layers of things that go into recognizing a good pattern. Today I learned that a good pullback should be narrowing in range.

Thanks for posting charts and the extremely important commentary and observations, X!

Charles (in San Fran) said...

grey, that's when the stock opened today. There was a buyout offer I think.

lbcando said...

I wonder if you have any insights on trading a big downside wreck like today's... RACK. Do these present any additional concerns?

Thanks,

Lbcando

Anonymous said...

My .02:

greytrader - acquisition announcement delayed the open.

prospectus - that was Tom C., not X.

lbcando - why would there be any concerns? Looking for a gap and a set-up. If it is there, then trade it! Who cares about why it is there?!?!

TJ

nickm said...

Hi Tom,
Nice trade!... Apparently the spike was a trade(s) that happened at 12:24:59, but all trades got busted ( 600, 2500 and 300 shares)per my T& S window.
I have a question: You said that your stop did not get hit, I was wondering where did you have a stop at that time and if you can comment the reason/how you move your stops during the trade.

Prospectus said...

@TJ: Whoops! Add Tom C and all of X's contributors to my comment above...

KayakHandy said...

The trade room had nothing but technical problems today.

The sub contracting company that works on the overhead fire sprinkler system fixed a leak in one of the feed pipes and after he repressured the system two seperate valves in different security corridors failed which in turn sent a signal that the computer room was about to flood so the system shut down the entire computer rooms power. The valves were replaced and the two seperate sets of Electical breakers were reset...still no power! It seems that there are two extra master Breakers that are hidden behind two pannels that must be unscrewed and the breakers reset. That took until 3:45am to figure out because nobody had a set of blue prints here at the office and it took the Architect engineers of the building a very long time to trace where the extra breakers were.

What a fun day... NOT.

As for trading, I see that many Securities pros" 'both the Technical guys and the fundamental guys are saying it's time to sell the Tech. group because of the season...they may be right so I am taking almost everything Tech. off the table for now.

However with the continued falling and lower prices of oil and energy and the rising cost of food my cup runneth over with the low margin supermarket stores that pay a nice Div. until at least summer. My strategy is this, the Macro economic outlook is not sure what it sees for the FED in either direction of an Interest rate increase or decrease or growth directions...this keeps those stocks safe until a rate direction is known, the supermarkets have some pricing power right now and the Dividends will help keep the shorts away. As long as oil stays low, consumers will spend more money at the gut level grociers and will make more food buys at Schools, churches and sporting event functions. I have been long in SWY, SVU, COST, SYY and GAP ever since Albertsons (ABS)with one of the worst management teams ever assembled was bought out. I believe this entire group can still make some real good money. I know COST is more of a large big Box retailer but I think it's going to at least $59.00 and change. I will hold SYY until the end of summer because that is typically the best Q for them.

Anonymous said...

How do I send you an email?

Ray Ray Jr. said...

Me?

: )

Ray Ray Jr. said...

Click About Trader-X, Blogger Profile, Email.

KayakHandy said...

HOKU worked out as long position,

Just sold at $7.02 for real nice profit.

What did I see,

A gap up, an orderly pullback to the 5MA with narrow range bars then a break higher with the 8th bar that closed above the 5MA, 50% of the shares were purchased at $5.51 on the 9th bar and the rest purchased at $5.63 on the 9th bar.