anarco's blog

Boring

The market is quite boring right now, and I do not find anything worth trading. It seems like this week will be very slow going into the three-day weekend :-(

AUG 30 - RMBS

The chart above is the weekly for RMBS. Look at the beauty of the inverted H&S pattern and the perfection of the volume. If this baby breaks $20, it could go to $35. This one is a good candidate for my retirement account.

Aug 27 - TRV (NR7)

TRV has a quite compelling daily chart, and that is why I kept it in my radar fort the last few days.Today I was compelled to take the trade for the following reasons:1. TRV held up quite well during the first part of the session while the rest of the market was selling off.2. Once the sellers release the pressure, TRV made a decisive move above the $49 line which has been forming a base for the past few days.3. After taking $49 (also the PDH), TRV paused and printed a series of IBs against the upsloping 5 EMA. The trigger bars was a NR7, but I used the previous day high as my trigger (plus a few cents) and the PDH as my stop loss.My exit was a the R2 line.

Aug 24 - SHLD (C&H)

SHLD gaped down big 3 days ago and since that time I kept it on my focus list to see what it would do. Today the stock gaped down again but this time with some clear bullish action. This is a nice C&H pattern (but also could be read as a nr7 contraction sectup). Either way, there is an orderly bullish action a very shallow pause with volume contraction and then a 100% extension.Most of my trades these days are in the direction of the major trend so it was a bit hard having the 5EMA and PDL as potential resistance points, but SHLD did not have any trouble penetrating those areas.

Aug 20 - AXP

The first chart shows how AXP was trapped in a channel for the last week or so. I noticed that yesterday so I placed an alarm near the top and another one near the bottom of the channel.The second chart shows how I executed the trade in the 5min time frame. I basically placed a buy order a few cents above the ORH (which matched the top of the channel) and my stop loss was the low of the previous bar. I set my target at the 38% fib extension drawing the lines from the bottom to the top of the channel, which made sense to me since that was the range in play.

Away until August 20th

Aug 12 - ALL

ALL gaped up and the ORH matched the PP from a few days ago. Then it printed 2 IBs on the top half of the first bar, so I entered when the high of the 3rd bar broke. The target was 38fib extension drawn from the PDL to the ORH, but I exited as soon buyers hesitated. In a regular day, I would this a bit more room, but I did not want to risk getting chopped on the FOMC action. And also price had consolidated around 28.60 so I was expecting the next leg up to have more force.

Aug 10 - RIMM

Traded it like 00NR7 and DayTrader. No need to post one more chart with this one. I also traded CNX off 2/15, but had to scratch the trade after the bear engulfing bar (7th bar).

Aug 5 - JPM (bull flag)

This is exactly how I want to trade and I really, really hope I can keep this up. I am saying this not because this JPM trade was such a huge winner in dollar value, but because I think I executed according to my plan and my rules. I did not enter too soon and I did not exit in a hurry. I may have given up too much with my final exit, but I hope to keep improving there as well.The rational for this one is simple and it matches my bull flag setup parameters:- Initial decisive move with good volume.- Orderly pullback (bull flag) on declining volume- A bullish candlestick resuming the move up. That could be a bullish candlestick formation such as an offsetting bar, a hammer, etc.- The bullish candlestick finds support from the rising 5EMA- An IB after the bullish candlestick is a plusJamie: Your NR7 post is helping me a lot in defining trading rules. Thank you!

Aug 3 - SLB

SLB gaped up into the PP and I was hoping for the second bar to be an IB, but it broke above the PP with a bullish candle so I jumped in. I took a partial at the next PP level and was ready to wait for consolidation before the next leg, but I exited after a bearish long wick candle that touched the $56 number.At the moment I exited I realized I exited too quickly and that was a mistake for the following reasons:1. At the point of my exit SLB was still printing higher lows, which means that the trend was instact.2. I did not give SLB time to rest/retrace/pause before the next leg up.3. I was operating out of fear. And fear and greed are the main enemies of a trader.So while this was not a great trade in terms of results, it has helped realize the type of rules I need to define in terms of trade management.