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Tuesday, December 09, 2008

Tuesday's action - 120908

I took this chart off StockBee's blog, who took it off DailyKos.

The percentage change numbers are across the bottom, and above are all the years that fall into that category. For example, you look across the bottom and see the category "0-10%" and look above for all of the years that fall in that range.

A quick glance will show you how dire this year's action is...hint - look at the bottom far left:

Do I still trade 15-minute charts? I get that question a lot. Yes, I usually make several trades a week from 15-minute charts. Today I entered DRYS on a break of the fourth bar's high.

DRYS gapped up and rallied through the ORH, printing higher lows the entire time. The fourth bar was the narrowest range of the morning (NRM), and represented a pause in the action. It also formed an "in the tail" setup that I have talked about frequently in the past (do a search on this blog). The target was the Fibonacci extension, and it was hit two bars later.

It is interesting to note that the pullback from the early rally paused at the halfway point between the high and the FE...a level we have been discussing over the past few days (black dashed line). Attentive traders could have entered a second long there for a quick move back to the morning's high (almost).

DRYS was a nice percentage gainer (note the chart below is not complete - there was an hour left in trading when I took the screen shot).

note - this stock appeared on the Equity Watchlist for today.



Charlie said...

I traded this off the equity watchlist today too but on the 5-minute chart. They have some huge movers and I am very satisfied with them. Thanks for the referral.

anarco said...

Cool trade X!
I just looked at the weekly chart for DRYS and saw that it was trading at $100 in June and at $4 a fews days ago. What a market!

Anonymous said...

I was in DRYS as well, 5-minute. Ditto on equitywatchlist - it has been very profitable thus far.