This trade is pretty much a routine, "another day in the office" type - but I want to use it to illustrate how we manage the trade as it develops. It starts with fairly standard breakout of Cup and Handle type, $51 resistance to break. Initial stop is under the nearest support formed by a few bars prior to breakout, 50.85 (there is a variation for .90 for stricter risk control). Now, as stock moves in our favor we:
1. partial out (1/2 or 1/3) around 51.10 - .15;
2. trail stop to under breakeven level, 50.95.
3. partial out second time around 51.25 - 51.30
4. trail stop to under 51.15 - look at the new support formed on the chart during a pullback
5. and finally exit in full around 51.40 -.45 as our target is hit.
Chart illustrates it all perfectly. Notice also the volume configuration: it repeates the handle form, just as want it; then it dries up on pullback, confirming the uptrend.
Session Time: Wed May 04 00:00:00 2011
[08:58] {dino} gm all
[08:58] {Threei} morning dino
[08:59] {dino} :)
[09:00] {nemo} we short SLW yet?
[09:00] {Threei} lol
[09:00] {nemo} GMCR and LVS should be fun today
[09:00] {ese} mornin
[09:01] {Threei} ese :)
[09:14] {larisa} gm :)
[09:15] {ese} dino....still have my eye on irf
[09:15] {Threei} larisa :)
[09:15] {ese} mornin laris
[09:15] {larisa} vad, ese :)
[09:17] {nemo} MGM
[09:18] {dino} yes ese
[09:18] {dino} wlk too
[09:22] {_rizvisy1} gm all
[09:23] {Threei} riz :)
[09:23] {_rizvisy1} vad gm
[09:27] {Threei} LVS... possibly .75 breeak short if consolidates just a tad
[09:27] {Threei} opening can be hectic for it though
[09:29] {jfjf64} mornin all
[09:30] {Threei} jf :)
[09:30] {Threei} what do you know, SLW was a short
[09:30] {Threei} shocking
[09:31] {Threei} LVS worked but no chance for a call
[09:31] {Threei} let's let it bounce
[09:32] {Threei} SLW, bounce candidate for a scalp
[09:32] {Threei} Long Setup: SLW .55 break
[09:32] {Threei} .45 stop
[09:33] {Threei} 1:1
[09:33] {ese} L lvs .97
[09:34] {Threei} 1:2
[09:34] {Threei} wow... that's way too far from bottom ese
[09:34] {ese} sm
[09:34] {ese} ya.....was going for .00 break
[09:34] {Threei} sharp spike about 50 cents... it was a "hunt for short entry" rather than new long
[09:35] {Threei} Short Setup: SLW .80 break
[09:35] {ese} out lvs .96
[09:35] {ese} -.01
[09:35] {Threei} ugh, late a bit
[09:35] {Threei} ok, in on second chance
[09:35] {Threei} 1:1
[09:36] {Threei} 1:2
[09:36] {dino} wlk sm l .50
[09:37] {Threei} wow, volatility
[09:37] {dino} irf sm l .40 ave
[09:37] {ese} volitile.....thought it was gonna take off on the first break
[09:38] {Threei} problem with this kind of entry... too much whipsawing action
[09:38] {Threei} may get lucky if the very first sharp move after your entry is in your favor
[09:38] {ese} ya
[09:39] {Threei} (JP) US Nuclear Regulatory Commission: Has only seen 'incremental improvements' in stabilizing reactors and spent fuels at Fukushima
[09:39] {Threei} heh... news cycle has moved on, readers' atention span can't be that long... no one remembers those reactors anymore
[09:41] {dino} what reactors?
[09:41] {Threei} Short Setup: RIMM .10
[09:41] {Threei} lol
[09:41] {dino} out wlk .25,
[09:42] {dino} +.75
[09:42] {Threei} wtg
[09:42] {dino} ty
[09:42] {ese} what nuclear plants?
[09:42] {Threei} let's try aggressive
[09:42] {Threei} Short Setup: RIMM .14 break
[09:42] {Threei} if stays under .25
[09:42] {Threei} .15 that was, sorry
[09:44] {ese} Lirf .36
[09:45] {Threei} no go
[09:49] {Threei} Short Setup: VSEA .25 break
[09:49] {Threei} if stays under .30
[09:49] {Threei} aggressive entry for .20
[09:51] {nemo} HRS
[09:51] {nemo} that
[09:52] {nemo} that's a buyout play Vad
[09:52] {Threei} ?
[09:52] {nemo} VSEA
[09:53] {Threei} missed that, thanks
[09:53] {Threei} scratch that caall
[09:53] {nemo} yw
[09:54] {Threei} Short Setup: CAT .60 break half lot
[09:55] {Threei} invalidated
[09:56] {Threei} looking for better entry though
[09:57] {Threei} got away
[09:59] {nemo} wanted to sell .49s that didn't work
[09:59] {Threei} NVIDIA Corp Weakness attributed to circulation of Mac related blog noting that yesterday's new iMac announcement featured AMD graphics processors, comments that Apple appears to be moving away from NVDA
[10:00] {Threei} *(US) APR ISM NON-MANUFACTURING COMPOSITE: 52.8 V 57.5E
[10:00] {Threei} argh CAT
[10:00] {nemo} {nemo} wanted to sell .49s that didn't work
[10:00] {nemo} jumped right by
[10:07] {dino} wlk sm l .05
[10:10] {Threei} bounce time CAT
[10:10] {Threei} .62 long
[10:11] {Threei} if holding .50
[10:11] {nemo} what stock
[10:11] {nemo} ?
[10:11] {Threei} ??
[10:11] {nemo} cat
[10:11] {nemo} I have cat at 111
[10:11] {Threei} [10:10] {Threei} bounce time CAT
[10:11] {jfjf64} you drinkin
[10:11] {Threei} ugh
[10:11] {nemo} nope
[10:11] {Threei} forget it, wrong quote
[10:11] {nemo} thought so
[10:12] {nemo} I know who is drinking
[10:12] {Threei} lol
[10:12] {Threei} anyway
[10:12] {Threei} Long Setup: CAT .10 break
[10:12] {Threei} half lot
[10:12] {Threei} stop under 111
[10:13] {Threei} target .45
[10:13] {Threei} Long Setup: FCX .65
[10:13] {Threei} if holding .50
[10:14] {Threei} FCX invalidated
[10:15] {nemo} stop aroo
[10:15] {Threei} no go CAT
[10:15] {Threei} probably a rinse but...
[10:15] {patience} thanks vad, out of slw.to from earlier +.51
[10:16] {Threei} wow... that was a good while ago
[10:16] {Threei} yeah CAT rinsed
[10:16] {Threei} it's wrong
[10:16] {nemo} I went long again
[10:16] {Threei} target hit then
[10:16] {nemo} yeah .43
[10:17] {nemo} that was half
[10:18] {nemo} I'm out below .40
[10:19] {Threei} FCX
[10:19] {Threei} valid again
[10:19] {Threei} target .90 - .95
[10:20] {jfjf64} missed
[10:20] {jfjf64} grrrrrrrrrrrrrrrrrrrrrrrrrrr
[10:21] {Threei} second chance
[10:22] {jfjf64} .61
[10:22] {jfjf64} in
[10:22] {gregns} thats even better!
[10:22] {nemo} I'm out .68 cat
[10:22] {Threei} wtg
[10:22] {jfjf64} comon fcx
[10:23] {dino} gj
[10:23] {jfjf64} pass the vodka 3i
[10:23] {RonS} BID blood
[10:25] {jfjf64} 2x4 please
[10:25] {dino} out irf .70, +.30
[10:26] {jfjf64} gj
[10:26] {dino} ty
[10:27] {jfjf64} fcx testing me
[10:27] {Threei} no go
[10:28] {jfjf64} dog with fleas
[10:30] {ese} out irf .73 +.37
[10:31] {nemo} int
[10:32] {Threei} CAT is back into trigger
[10:33] {jfjf64} gmcr 77.00 break dn
[10:33] {jfjf64} ??
[10:40] {dino} kro blood
[10:42] {dino} kro sm l .00
[10:42] {dino} out .50, +.50
[10:44] {Threei} FCX...
[10:44] {Threei} starts looking like another breakdown
[10:45] {Threei} Short Setup: FCX 51 break
[10:45] {Threei} invalidated
[10:46] {Threei} valida again
[10:46] {ese} ipgp
[10:46] {ese} dino
[10:47] {ese} depends on whether thats news is good enough
[10:47] {dino} kro drop again
[10:48] {ese} it beat and revs were up
[10:48] {dino} ipgp, upped to 65
[10:48] {dino} good news is bad last week or so
[10:48] {ese} ya
[10:48] {Threei} 1:1
[10:48] {dino} think ua, wlk, irf, kro, ipgp
[10:49] {dino} bsft bloody
[10:49] {ese} dn 7 bills on good news is basically bizzare
[10:49] {dino} same as above ones ese, somethings changing
[10:49] {ese} lookin for support at 60.00 i guess
[10:50] {ese} ya good point
[10:50] {Threei} 1:2
[10:50] {ese} some kinda top in the mrkt
[10:50] {Threei} it's easy ese
[10:50] {dino} perhaps
[10:50] {Threei} look at its daily
[10:50] {dino} gut says, careful
[10:50] {Threei} march from 35 to 75
[10:50] {Threei} then selloff after good news
[10:50] {Threei} classic
[10:51] {ese} bull trap yesterday looks like
[10:51] {dino} 2351, 1335 gaps below
[10:52] {dino} chem plays are like wack-a-mole
[10:52] {ese} ouuuuuu....nice dollar bounce there ipgp
[10:52] {dino} wait for re-test imo
[10:53] {dino} kro lod area
[10:53] {ese} eeeyeowwwzaaaaaa
[10:53] {dino} broke
[10:54] {dino} sizing to 300 on these capits
[10:55] {dino} sm l .65
[10:55] {dino} kro
[10:56] {dino} out .07, +1.42
[10:56] {RonS} ...like the Pope giving a blessing...
[10:56] {ese} eeeeyeowwwzaaa on that one dino.....nice one
[10:56] {dino} wow
[10:57] {dino} lucky
[10:57] {dino} could've dropped that much that fast
[10:57] {dino} these earnings are brutal and volitile to extremes
[10:57] {ese} understatement
[10:58] {dino} keeps going up
[11:02] {dino} hrs upgrades, drop 4
[11:03] {dino} lots of gaps below it
[11:09] {dino} ipgp
[11:09] {dino} hrs sm l .50
[11:10] {dino} stop .19, using 3s
[11:15] {dino} open lod
[11:16] {davd} errant trade apple back 10:45am - mini flash crash? cnbc
[11:17] {Threei} Short Setup: RIMM .40 break
[11:17] {Threei} (US) Treasury Dept informs Congress that $2T is required as an increase in debt limit to ensure Govt operates through to 2012
[11:19] {dino} 07 all red careful
[11:19] {dino} out wlk +.01
[11:21] {dino} a lot of stocks are down 10 bucks in last week
[11:23] {dino} ipgp app lod ese
[11:24] {Threei} (FR) Moody's affirms AAA rating; rating is secure and is not conditional on implementation of constitutional budget limit
[11:24] {nemo} ctsh inflection here
[11:25] {Threei} Short Setup: X right here
[11:25] {Threei} stop above .80
[11:25] {Threei} aggressive entry for .60 break
[11:27] {dino} sm l ipgp .95 ave
[11:27] {dino} stop .73
[11:28] {Threei} I seem to be in "hit one miss one" mode today
[11:29] {dino} wlk sm l .90
[11:29] {dino} stop .69
[11:29] {dino} wow kro, +4 from my exit
[11:33] {dino} irf sm l .14
[11:33] {dino} stop .98
[11:34] {dino} ipgp stop -.25
[11:37] {dino} wlk stop .69 -.21
[11:39] {nemo} dino, pivot support at .44 on IPGP
[11:40] {dino} ty
[11:40] {dino} gut has hi 60s magnet
[11:42] {nemo} well it just dropped that
[11:42] {dino} nemo, i see that on those vwap charts, thx again
[11:44] {dino} ipgp sm l .30
[11:45] {dino} .05 held re-test
[11:45] {nemo} spread is all you dear boy
[11:45] {dino} tdsc sm l .20
[11:46] {dino} indeed
[11:54] {patience} slw dropping, trying to break down
[11:56] {Threei} UUP day high
[11:57] {Threei} GLD and SLW react
[11:58] {dino} out ipgp 62.60, +1.30
[11:58] {jfjf64} nice
[11:58] {dino} ty
[11:58] {dino} wlk rinsed
[11:59] {dino} too soon
[12:01] {dino} tdsc goes green
[12:02] {dino} stop to .60
[12:03] {dino} to .70
[12:03] {dino} out .69, +.49
[12:05] {RonS} gj, ya "lucky" basstad...:)
[12:05] {jfjf64} lol
[12:06] {RonS} ...wanted to spell it like nemo would pronounce it
[12:07] {nemo} bastid
[12:07] {dino} :D
[12:12] {dino} evep drop
[12:13] {dino} ipgp goes another 2 bucks, sheesh
[12:18] {dino} agq 5 day 383 to 233
[12:20] {dino} 07 all red
[12:30] {patience} dino, i need to learn patience in holding a short, scalpers regret with slw
[12:34] {dino} ironic, considering your name here
[12:36] {patience} shorting is a different skillset, not the same as going long
[12:42] {dino} just funning w/ya
[12:44] {davd} that name is nothing but trouble :s
[12:48] {Threei} looking at UUP daily,
[12:49] {Threei} 21 break, could start a meaningful bounce
[12:49] {dino} lol
[12:49] {Threei} which should send SLW, GLD and USO down like
[12:49] {Threei} ummm
[12:49] {dino} sm l itmn .80
[12:50] {Threei} no analogy that I could use in relatively decent company
[12:50] {dino} siga spike
[12:51] {dino} i can't borrow it
[12:52] {dino} wow
[12:53] {Threei} rumor
[12:53] {Threei} contract win for treatment of small pox
[12:55] {ese} .
[13:00] {dino} wlk sm l .94
[13:06] {patience} in pot.to for a swing more than likely
[13:11] {nemo} vclk
[13:21] {Threei} Long Setup: FCX 51 break
[13:24] {davd} darn missed it
[13:25] {Threei} target's .40
[13:25] {Threei} 3 partials
[13:25] {Threei} half out
[13:25] {Threei} .12
[13:25] {Threei} offer second partial around .25
[13:25] {Threei} stop .95
[13:27] {Threei} out 1/4 more
[13:31] {Threei} one more push please, FCX
[13:31] {Threei} I want that .40
[13:33] {Threei} stop is under .15 now
[13:38] {dino} giddy-up
[13:38] {Threei} good girl
[13:38] {Threei} out .40
[13:38] {tomg} nice, vad, ty
[13:38] {Threei} :)
[13:38] {Threei} not making the day stellar, but fixing it
[13:39] {dino} gj
[13:39] {gregns} ty, in & out 3 times, i did not see that .40 target at first kept buying at those dips
[13:39] {dino} irf to .54
[13:40] {Threei} greg :)
[13:40] {Threei} [13:25] {Threei} target's .40
[13:40] {gregns} i know, i saw it later
[13:40] {Threei} got it
[13:42] {Threei} catch of the day, classic breakout chart
[13:43] {dino} out irf .out irf .55, +.41
[13:43] {dino} out itmn .12, +.32
[13:56] {dino} hrs stop -.31
[13:59] {ese} cya all....may not be around much the next 2 days.....my Rhythm and Blues Band "The Midnights" is doing some performing for a financial investment firm from Montreal start tomorrow and going through to wed next week....BIG BUCKS!!!
[13:59] {ese} should be able to pop in though
[13:59] {Threei} cool
[13:59] {Threei} have fun ese
[14:00] {dino} have fun ese
[14:09] {nemo} RAL BAP
[14:09] {nemo} dino moves
[14:10] {dino} rejects cag bid, rah
[14:27] {dino} out wlk ave .52, +.58
[14:28] {nemo} vclk
[14:33] {jfjf64} slw s 37.00
[14:47] {dino} .
[14:59] {Threei} no news for this selling
[15:03] {Threei} Short Setup: FCX .50 break
[15:05] {Threei} 1:1
[15:10] {Threei} 1:2
[15:10] {Threei} that cements the day as positive
[15:13] {Threei} is anyone here?
[15:13] {_rizvisy1} yeah
[15:14] {davd} yep
[15:14] {gregns} yup
[15:14] {_rizvisy1} looking at spy too
[15:14] {Threei} ugh... thought I could sneak out {G}
[15:15] {_rizvisy1} spy has flattened out
[15:15] {Threei} yeah... but feels like more selling in cards
[15:16] {Threei} 1:3, out
[15:46] {Threei} not looking for any more trades today
[15:47] {Threei} thank you all, have a good evening
[15:47] {Threei} see you tomorrrow
[15:56] {dino} calling it a day, good time, thx all, biggest day in awhile
