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Wednesday, November 12, 2008

Wednesday roundup

This headline caught my attention tonight:

Google shares below $300 for first time since 2005; SAN FRANCISCO (Reuters) - Shares of Google Inc on Wednesday fell below $300 for the first time since late 2005 after analysts lowered their estimates on the Internet search giant, citing a weak advertising market.

Read the story here.

VNO - 111208; 15-minute chart

With VNO, I plotted my Fibonacci lines over the previous day's low to high because even though price gapped down, it did not gap below the previous day's low. Had it gapped below that level, I would have plotted my Fibonacci lines from the previous day's high to the opening range (OR) low.

Price rallied from the morning low and hit resistance at the 50% retracement. It tried to break through that level for over an hour before finally turning back down. I shorted on a break of the trigger bar indicated by the first white arrow. I noted the next bar with a white arrow also as it presented a second entry - a "hanging-man" candle.

Price declined for the remainder of the session, and I covered at the Fibonacci extension.



Danny said...

Nice trade. Is this market ever going to stop going down? If you can, post your Dow chart analysis this week. Thanks.

Trader-X said...

Danny - I will try to do that today/tomorrow. FYI, I have a potential advertiser that does some great analysis and he sent me an email telling me we are in for a solid bounce in between now and the end of the week. Since we are sitting on the lows of the day, I am skeptical...

Todd said...

If the 60-point rally in the NQ holds I will be impressed by your advertiser's call. What is he selling?


Anonymous said...

Wow. Is it a signal calling service? What time did they email you? Impressive.


Trader-X said...

Hey guys - in reference to the potential advertiser, no it is not a signal calling service. They provide a daily watchlist for traders and I have been evaluating it for a few weeks. Overall I am very impressed. I won't name the site yet, but maybe in the next week.

He emailed me the bounce call about an hour after the open because he knows I trade Futures. He said he sees the NQ rallying to the 1220 level probably by the close Friday. It just missed that level by 15 points today (with an hour of trading left), so an impressive call for them.

Roger B. said...

Damn, 1220 hit. Amazing call.

Trader-X said...

Actually even more so - I looked back at his email and the target he listed was actually 1230-1240. My target was around 1230 which was the FE from yesterday's range.

Pat said...

I know it was stop out, but would the hanging man alike 2 bars earlier the first entry a trigger as well?


Trader-X said...

Pat - the low of the bar you mentioned was not taken out, so there would not have been an entry.