Clear-cut example of a bull flag formation, applicable in any time frame. Shallow pullback on decreasing volume (annotated on the chart) is general idea of the trade. We also need a trigger and stop level to give us the structure of the trade; those levels are formed by the mini-range stock creates as it finishes forming the flag (again, see the chart). Pleasant side of this particular play was instant gratification as price spiked into 1:4 risk/reward almost immediately.
Session Time: Mon Dec 06 00:00:00 2010
[08:23] {Threei} RMBS Guides Q4 R$85-93M v $42Me (R$40-50M prior guidance); cites newly signed patent license agreement with Elpida
[08:51] {Threei} http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8182605/Chinas-credit-bubble-on-borrowed-time-as-inflation-bites.html
[08:57] {dino} gm all
[08:57] {Threei} dino :)
[08:59] {davd} hi all
[08:59] {Threei} see RMBS?
[08:59] {Threei} davd :)
[09:02] {harth} Good Morning All:)
[09:02] {dino} :)
[09:02] {Threei} harth :)
[09:02] {dino} rdwr
[09:09] {stewy} good morning everyone
[09:09] {RonS} gm, rmbs 6.3 mil sh short, 8.8 days to cover ave vol
[09:10] {Threei} stewy, ron :)
[09:11] {Threei} these 2x "misses" in estimates leave one highly suspicious of how the estimates are made
[09:11] {Threei} Guides Q4 R$85-93M v $42Me
[09:11] {Threei} say what? :)
[09:15] {ese} morning
[09:15] {Threei} ese :)
[09:16] {ese} massively sick this morning.....aching bones the whole business.......anyone else with a christmas cold
[09:17] {Threei} wow... you shouldn't kiss that sneezinbg santa helper I guess
[09:17] {ese} i know i know........
[09:18] {Threei} but honestly, I can't blame you
[09:20] {ese} rdwr vrgy.....going nuts
[09:20] {ese} take over talk looks like
[09:21] {larisa} gm :)
[09:21] {ese} laris
[09:21] {Threei} larisa :)
[09:21] {larisa} ese, vad :)
[09:24] {davd} fyi sndk downgrade
[09:24] {jfjf64} MORNIN
[09:24] {ese} dave jf
[09:24] {Threei} jf :)
[09:24] {Threei} with meaningful target 48 too, davd
[09:25] {davd} yea, i know, just wanted to make sure anyone of interest was fully informed.
[09:27] {Threei} let's let RMBS calm down a little and see if there is something readable
[09:28] {ese} thats one heck of a nice daily chart rmbs
[09:29] {Threei} yes but...
[09:29] {Threei} gap is hirribly big, and the reasion is highly suspect
[09:29] {ese} hmmmmmmm
[09:29] {Threei} and my typing is as always
[09:29] {Threei} RIMM is flirting with green
[09:30] {Threei} Euro vs US Dollar European stocks rally to session highs heading into NY open helped by chatter of a positive think tank report
[09:32] {dino} bth continues down
[09:32] {Threei} Short Setup: RIMM .75 break
[09:32] {Threei} if stays under .85
[09:32] {Threei} invalidated
[09:36] {Threei} RMBS looks ready for bounce
[09:36] {Threei} small shares .25 break
[09:37] {Threei} if holding above .10
[09:39] {Threei} Long Setup: RIMM .20 break half lot
[09:40] {Threei} stop under .10
[09:40] {Threei} no go
[09:40] {Threei} RMBS invalidated
[09:42] {ese} hugh guidance up for rmbs
[09:43] {Threei} double
[09:44] {ese} dino ya there.....DG
[09:45] {dino} y
[09:45] {dino} secondary
[09:45] {ese} dg another good q and dnf 2 bills
[09:45] {ese} down
[09:45] {dino} dead for day or two
[09:46] {dino} 25 m sh
[09:46] {Threei} Amazon.com Inc Planning to launch an online streaming video product to compete with Netflix - Business Insider
[09:46] {Threei} - The streaming package could get bundled in with Amazon's $79 per year Amazon prime service. Netflix's streaming video only service costs $95 a year.
[09:46] {Threei} NFLX doesn't look scared
[09:47] {stewy} x consolidating?
[09:47] {dino} celg
[09:47] {Threei} feels so
[09:47] {Threei} 62 break is a valid try
[09:48] {dino} celg odd
[09:48] {ese} that should be enough to kick start it up
[09:51] {Threei} V invalidated
[09:51] {Threei} X
[09:51] {ese} 21 looks really good for rmbs imo...that would be the in for sure point for me
[09:53] {Threei} Short Setup: FCX .50 break half lot
[09:53] {Threei} stop above .65
[09:56] {Threei} no go
[09:56] {ese} vvus headed dn....errectile disfunction drug...interesting co incidence
[09:56] {Threei} Monday curse is back or what
[09:59] {Threei} Long Setup: AIG .10 break
[10:00] {Threei} just a scalp most likely
[10:00] {dino} celg sm l .26
[10:00] {ese} rmbs...1st short covering rally
[10:01] {Threei} AIG 1:1
[10:01] {jfjf64} break the curse
[10:02] {jfjf64} aig
[10:02] {Threei} half of it for now anyway
[10:02] {Threei} 2 stops, so need another win to start anew, lol
[10:04] {ese} nice .10 there vad
[10:04] {ese} 50,000 shs.....? you done for the day?
[10:06] {Threei} I wish
[10:06] {ese} L rmbs 1/2.66
[10:06] {dino} celg stopped -.33
[10:08] {ese} L rmbs avg .69
[10:08] {RonS} hgsi...fda decision on that lupus drug punted for 3 mos and stock green
[10:09] {dino} cats and dogs
[10:09] {RonS} ?
[10:10] {dino} world messed up
[10:10] {Threei} lol
[10:10] {Threei} AIG 1:2 for patient types
[10:10] {Threei} which is not me in this case
[10:10] {dino} sm l gil .55
[10:11] {dino} all green
[10:13] {Threei} awww
[10:13] {Threei} thought of RMBS .50 short
[10:13] {Threei} and never found the cajones to call it
[10:14] {ese} stopped rmbs ..50 -.19
[10:15] {ese} you would have been correct
[10:19] {Threei} watching LVS
[10:19] {Threei} not sure for what yet, bounce or something else
[10:19] {dino} aro holds well w/gs sell
[10:23] {Threei} not right time yet for LVS bounce, IMO
[10:26] {dino} aro sm l .15
[10:27] {Threei} LVS
[10:27] {Threei} dive under 49 and cross back if holding .90 is long
[10:29] {Threei} Long Setup: LVS 49 break if holding above .90
[10:30] {Threei} 1:1
[10:34] {jfjf64} nice
[10:34] {jfjf64} trade
[10:34] {jfjf64} lvs
[10:35] {Threei} remediated the stops
[10:35] {Threei} we are even, market and I
[10:35] {jfjf64} yes
[10:35] {Threei} time to pull ahead
[10:35] {jfjf64} yes
[10:35] {jfjf64} lk ya style
[10:35] {jfjf64} lol
[10:35] {jfjf64} now we send it to the moon ALICE
[10:41] {Threei} don't oversit it jf
[10:41] {dino} forr?
[10:42] {jfjf64} IM LONG GONE
[10:42] {Threei} OK
[10:42] {Threei} I don't see any news for FORR dino
[10:43] {ese} what makes this stock tick...oxps.....options express.......3 days 3 huge gaps up
[10:44] {dino} $3 dividend i think
[10:44] {Threei} declared huge dividend a few days ago
[10:44] {Threei} 4.50
[10:45] {ese} ok thats huge
[10:45] {ese} is it a big clearing house or something like that
[10:48] {Threei} ECB's Bini-Smaghi: EMU backstop fund (EFSF) is big enough for the time being - CNBC taped interview
[10:48] {Threei} - Notes the euro is still a relatively young currency and is being tested more than other currencies
[10:48] {dino} they will have to open the printing presses or the euro is toast, imo
[10:49] {Threei} well, printing just wins them some time....
[10:49] {Threei} whole thing is crambling
[10:49] {dino} it's that or default
[10:49] {jfjf64} chk
[10:49] {jfjf64} watchin
[10:50] {jfjf64} .50 ton of shares
[10:52] {jfjf64} .48 short
[10:53] {jfjf64} tight stop .51
[10:54] {dino} lxtc sm l .00
[10:54] {dino} ltxc
[10:56] {jfjf64} eats .45
[10:57] {jfjf64} sd drop
[10:57] {ese} L rmbs .23
[10:58] {Threei} Short Setup: X .80 break
[10:58] {Threei} invalidated
[11:00] {jfjf64} mtw
[11:00] {jfjf64} .36 break
[11:01] {jfjf64} 5 min lokks good
[11:01] {jfjf64} imo
[11:02] {ese} L rmbs avg .33
[11:04] {jfjf64} in
[11:05] {RonS} mtw...lbo rumors...
[11:05] {jfjf64} sit back and mk some cash
[11:06] {jfjf64} lol
[11:06] {jfjf64} im using 5 min chart
[11:06] {jfjf64} might tk little
[11:07] {jfjf64} 10 min looks wonderful
[11:07] {jfjf64} also
[11:11] {jfjf64} out.45
[11:13] {Threei} Long Setup: GLD .40 break
[11:13] {Threei} if stays above .30
[11:14] {Threei} aggressive entry for .50 break setup
[11:15] {Threei} if works, planning to sell half near .50 and ride the break and rally
[11:15] {Threei} nice spike
[11:15] {Threei} one more please
[11:17] {Threei} 1:1, half out as planned
[11:17] {Threei} 1:2 1/4 more
[11:17] {Threei} missed 1:4
[11:18] {Threei} was it a pure unbridled beauty or what
[11:19] {Threei} 1:3
[11:19] {Threei} oulling ahead
[11:19] {Threei} pulling too
06[11:19] * Threei slaps jfjf64 around a bit with a large roll of cash
[11:20] {dino} partial bth .91 l
[11:20] {Threei} best trade of the day, no single taker?
[11:20] {Threei} you all asleep?
[11:20] {stewy} guess i'm not worthy of
[11:21] {stewy} unbridled beauts
[11:21] {Threei} lol, say what?
[11:21] {stewy} didn't get it
[11:21] {Threei} Goldman Sachs head bond strategist Garzarelli: prefer stocks and corporate bonds over US Treasuries
[11:22] {stewy} but i see the setup clearly
[11:22] {Threei} why? .40 break was fairly slow
[11:22] {Threei} and even gave a second chance
[11:22] {Threei} pulled back to .35 after a break
[11:23] {stewy} was watchin x; must stick to one at a time, right?
[11:23] {Threei} that's what our wives say
[11:23] {stewy} so you have more than one?
06[11:23] * Threei notices larisa and ilana, hides behind the big rock
[11:32] {jfjf64} nice gld
[11:32] {jfjf64} 3i
[11:32] {jfjf64} we +
[11:32] {Threei} ty
[11:32] {Threei} we are
[11:32] {Threei} starting day with two stops and three invalidations, took dedication to break the trend
[11:33] {jfjf64} faith =3i
[11:33] {jfjf64} modays always mk ya wk
[11:36] {dino} manic monday
[11:50] {ese} L rmbs avg still .33
[11:56] {dino} bth stopped
[11:59] {Threei} dion't forget to look at today's Catch of the Day guys
[12:00] {Threei} GLD trade broken down with annotations on the chart so you can see the reasoning
[12:00] {Threei} and trade structure
[12:00] {Threei} first one who asks where to look gets trouted
[12:02] {Threei} (GR) Greece PM Papandreou: targeting moving out of crisis by 2013
[12:02] {Threei} - Believe eurobond idea needs serious consideration.
[12:02] {davd} i think i need to get trouted, not sure where to look?
[12:02] {Threei} http://tradinglog.realitytrader.com/
06[12:02] * Threei slaps davd around a bit with a large trout
[12:02] {davd} just in time for us to get out of afghanistan by 2014
[12:02] {Threei} lol
[12:03] {Threei} that's trading log, updated each day after the market close,
[12:03] {Threei} on the days when we have interesting educational chart blue blurb on the top shows it
[12:03] {stewy} u posting it at the other place?
[12:03] {Threei} like this one
[12:04] {Threei} http://tradinglog.realitytrader.com/2010/12/nicely-profitable-day-with-various.html
[12:04] {Threei} other place?
[12:04] {Threei} or http://tradinglog.realitytrader.com/2010/12/dec-01-2010.html
[12:04] {stewy} cara
[12:04] {Threei} oh yes
[12:04] {Threei} but they have no trading log there
[12:05] {Threei} chart with comments only, so if you want to see details of the trade call, you can see them in the log only
[12:06] {stewy} thx
[12:07] {Threei} market stalled
[12:08] {Threei} you still in RMBS ese?
[12:09] {RonS} i am
[12:09] {Threei} looks like has a good chance to resume slow creep upward
[12:10] {Threei} stop is tight enough from here
[12:10] {Threei} break of .50 should launch faster move
[12:11] {RonS} l rmbs small, will cue for that 3i
[12:14] {RonS} whr sm s .40
[12:15] {ese} hi vad yup........
[12:15] {Threei} looks good so far... requires patience though
[12:16] {ese} been building a position in it avg .33 3k so far........but thats as far as i think i will go for a position
[12:18] {Threei} FNM/FRE say no foreclosures during two weeka of holidays
[12:18] {Threei} isn't that nice
[12:18] {ese} at 11:16 eastern it looked like it was a reverse head and shoulders but has now formed dinos double bottom 11;40 eastern....that looks much stronger and i believe it up from here
[12:19] {ese} it's
[12:19] {Threei} I don't want any details on what "dino's double bottom" means
[12:20] {ese} ahhhhh ok....didn't mean to upset you.......it'll never happen again
[12:20] {Threei} lol
[12:20] {Threei} here comes RMBS
[12:20] {ese} target is .00 by the way
[12:23] {ese} I have to admit day trading can be a very civilized way to make a living
[12:23] {ese} ahhhhhhh!!!!!!!!! ohhhhhhhhhh my god!!!!!!!!!!!!!! whats happening.............
[12:23] {ese} phewwwww........nothing.......i'm ok now
[12:24] {jfjf64} ya scaring me ese
[12:24] {ese} lol
[12:24] {ese} you?......damn....i scare myself most times
[12:25] {Threei} civilized?
[12:25] {jfjf64} you gotta start beatin ya drum louder when that happens
[12:25] {Threei} you mean meeting an investor on the road, putting knife to his throat and taking 15 cents on 5K shgares from him is civilized?
[12:26] {jfjf64} easy 3i
[12:26] {jfjf64} ya not in russia anymore
[12:28] {ese} well.........i've come to believe it's civilized
[12:30] {jfjf64} gld
[12:30] {jfjf64} bounce
[12:30] {jfjf64} ??
[12:31] {Threei} I'd orefer it to retest .80 once again
[12:31] {Threei} and of holding, buy a break of .90
[12:31] {Threei} so it would be a clear double bottom
[12:31] {jfjf64} ty
[12:31] {Threei} guess who is on tv
[12:32] {jfjf64} nemo
[12:32] {Threei} where is that drunkard btw
[12:32] {jfjf64} lol
[12:32] {jfjf64} hangin with les
[12:34] {jfjf64} mkt poppin
[12:35] {Threei} LVS
[12:35] {Threei} watch for dive under 49, little hesitation, holding abive .90 and cross of 49 again for long trigger
[12:40] {jfjf64} dirty dog with fleas
[12:40] {Threei} no chance for entry... oh well
[12:43] {jfjf64} gonna get lunch talk little
[12:47] {Threei} whoa
[12:47] {Threei} LVS
[12:47] {Threei} and I jst started typing .30 short alert
[12:47] {Threei} news hit obviously
[12:49] {Threei} no news here still
[12:54] {Threei} so... what was it?
[12:58] {RonS} i still have nothing lvs
[12:58] {Threei} neither do I
[12:59] {Threei} there is a negative headline on LPS
[12:59] {dino} lps
[12:59] {Threei} can it be that audio news clinets got them mixed up?
[12:59] {dino} nwn
[12:59] {dino} abm
[13:00] {Threei} LPS Ticking lower on report that LPS may have produced more faulty foreclosure documents than previously suspected (29.89, -1.13, -3.64%)
[13:03] {Threei} PKE
[13:04] {Threei} special dividend $1/share
[13:06] {Threei} US) Fed's Lacker: Additional expansion of the balance sheet may create more complications in withdrawl of stimulus due to need for a more 'rapid reduction' of balance sheet at a later date
[13:13] {Threei} lol
[13:14] {Threei} according to wikileaks, high ranking chinese official found unflattering comments about himself while googling his name
[13:14] {Threei} which started whole China vs Google thing
[13:26] {dino} lol, if it was a chinese citizen, they would've just shot him
[13:26] {Threei} totally
[13:36] {ese} I gotta go all....am still L rmbs .33,,,,cya tomorrow.....what can i say it's concert season
[13:37] {Threei} take care ese
[14:09] {Threei} Hearing Morgan Stanley makes cautious comments on Natural Gas names
[14:09] {Threei} - Says 2011 outlook could be negative catalysts.
[14:19] {Threei} Long Setup: SLW .60 break
[14:19] {Threei} if stays above .50
[14:27] {Threei} it was 2 cents from 1:1... I'd say let's trail to under .55
[14:27] {Threei} tighten risk control
[14:29] {Threei} ok... no means no
[14:29] {Threei} should have taken scalp I guess
[14:35] {Threei} RDWR Moves higher as Cramer rehashes earlier press reports of a possible deal in the mid $40/shr range
[14:35] {Threei} - Reminder: Earlier Israeli press cited a possible offer from Riverbed that may trump an HPQ offer (related HPQ RVBD FFIV CSCO JNPR )
[14:57] {dino} ice sm l .50
[15:02] {Threei} darn SLW
[15:02] {Threei} rinsed us
[15:04] {Threei} lousy 6 cents but still
[15:09] {dino} ice to .65
[15:10] {dino} out +.65
[15:10] {dino} opps +.15
[15:12] {Threei} 4.5 times less nice but nice anyway
[15:16] {dino} slow day
[15:17] {Threei} yeah... vreep up
[15:17] {Threei} creep too
[15:18] {jfjf64} lvs
[15:18] {jfjf64} inv c/h
[15:19] {jfjf64} .15 break
[15:19] {jfjf64} sittin lk a snipper
[15:26] {dino} out gil +.05
[15:30] {jfjf64} lvs
[15:31] {jfjf64} crosshairs ready
[15:32] {jfjf64} fire
[15:33] {jfjf64} die
06[15:34] * Threei hits LVSA over the head woth 2x4
[15:34] {jfjf64} comon
[15:35] {jfjf64} relode
[15:35] {dino} lol jf, spelling/typing curse of vad
[15:35] {Threei} sigh
[15:35] {Threei} lol
[15:36] {dino} back in ten
[15:36] {jfjf64} .20 key
[15:39] {jfjf64} leg dn lvs
[15:39] {jfjf64} jf reminds himself stop ther 4 treason
[15:42] {jfjf64} little sellin pressure bg winner
[15:45] {dino} lol, now talking to yourself
[15:45] {jfjf64} y
[15:45] {jfjf64} e
[15:45] {jfjf64} s
[15:45] {Threei} why not... I do, day after day
[15:45] {dino} me too
[15:45] {Threei} even self doesn't always honor me with answer
[15:46] {jfjf64} relode
[15:46] {jfjf64} fire
[15:46] {jfjf64} damn
[15:48] {jfjf64} 1/1
[15:48] {jfjf64} halfout
[15:49] {Threei} nice
[15:49] {jfjf64} stop breakeven
[15:49] {Threei} if we had more time, this RIMM chart would have me looking for a break
[15:51] {jfjf64} hit it baby
[15:51] {Threei} nice breakdown
[15:51] {Threei} good persistence, jf
[15:52] {jfjf64} done
[15:53] {dino} gld spike
[15:53] {dino} gj jf
[15:54] {jfjf64} ty
[15:54] {jfjf64} had a plan
[15:54] {jfjf64} lol
[15:54] {jfjf64} market was movind higher
[15:54] {jfjf64} she wasnt budging
[15:55] {jfjf64} that was key
[15:55] {jfjf64} imo
[15:55] {jfjf64} look this bad boy now
[15:56] {Threei} yup
[15:58] {Threei} wow, are we finally going to have a red close?
[15:58] {Threei} true rarity lately
[15:59] {Threei} ok guys, thank you all
[15:59] {Threei} have a good evening, see you tomorrow
[15:59] {jfjf64} ty
[15:59] {dino} cya
[15:59] {jfjf64} cya dino
[15:59] {Threei} spot gold all time new high btw
[15:59] {jfjf64} what is it
[15:59] {Threei} gold
[16:00] {jfjf64} yes
[16:00] {Threei} it's a nice-lloking yellowish metal
[16:00] {Threei} but that's not important right now
[16:00] {jfjf64} price
[16:00] {jfjf64} der
[16:00] {Threei} 1422.5
[16:00] {jfjf64} im lazy
[16:00] {jfjf64} wow
[16:01] {Threei} that was homage to Leslie Nielsen btw
[16:01] {dino} cya jf
[16:01] {harth} I got it, cya Tues
[16:01] {Threei} :)
[16:02] {dino} want to see a paint the tape, look bth close
[16:02] {dino} pushed it 2 bucks
[16:02] {stewy} good night all. c u tomorrow
[16:02] {dino} gn