BIDU, USO short

BIDU formed a beautiful bear flag. It was on my watchlist because of the daily. It was rejected near the 150 levels on Tuesday, followed by some consolidation on Wednesday. I was looking for some continued down movement today. First 2 bars nice red, followed by small retracement to meet the sloping 5 EMA. Formed a bearish candle. Entered short there. Nice ride down from there.


USO was my resistance setup.

SPY Short

SPY tried to consolidate below 9/16 high and 50 EMA but was unable to break. It broke down in the afternoon. Short opp. when there was a WRB followed by red NRB. Entered short on the break of WRB low. This produced good results esp. when market is over extended and with overhead resistance to overcome.

SLV Short

SLV short setup is what I call 'intraday resistance' short setup. The setup was not ideal as 50 EMA was under the entry on the 15 min chart. Price gapped down, tries to rally, meets the EMA as resistance. Short when price forms a lower high. Entered short, took partial at S2 and the remaining just above $41.


I did not take the gold short. I was watching both gold and silver short. Gold was also a resistance short but formed a higher high before breaking down. This usually produces the same result, maybe a little better.

TNA again

Traded TNA today - both long and short.


This pattern is also often repeated. Weakness the previous day, price opens just above the PDL and takes out the PDL within 30 mins. Same pattern here. Shorted on the break of the first candle low. Normally S2 would have been the target but covered above $80 (round number). Price did not tag S2 and reversed from there. Around afternoon, it looked like price was forming the resistance pattern. Shorted when price took out the mini support. Price broke S1, formed an almost IB and took out the low and immediately reversed. A signal to cover shorts. I covered my short and went long. Sold at 20 EMA.

July 25 - Short TNA

Started the day with a long in SLV on the break of 15/3 candle high. Ended this trade in a loss.


TNA gapped down and immediately rallied. It met the downsloping EMA's on the 15 min. chart which acted as resistance. TNA consolidated and tried to break this resistance throughout the afternoon but finally gave up. I love this setup because it produces some good results and the win ratio is much higher.Shorted TNA when price took off support and covered at S2.

Short - SLV, USO, CNX

Commodities were weak today. CNX was on my watchlist because the daily chart had a short setup under the PDL. First bar is a spinning top hitting the 50 EMA resistance. 2nd bar penetrates the PDL but closes above it. Entry is when price takes out the low of the 2nd bar. Since it was based on daily chart, set a decent target esp. when market/sector favors the trend.

USO gapped down, tried to rally in the first bar, then formed a consolidation of NRB. I shorted when price took out the low of the consolidation but was immediately stopped out in a fake breakout. Price then formed 2 narrow spinning top bars which was an excellent entry but I missed this entry. Price then moved down beautifully.

SLV gapped down near s2. Moved sideways till 5 EMA caught up with price. My entry was on the break of 5th bar low. There was low risk entry just after that. Nice downward movement in SLV.

This is my friday trade. Entry was on the break of the trendline.

SPY, ABX

There were a lot of short setups today. I had trades in AEM, FWLT, SPY, ABX.

SPY was resistance setup and worked like a charm. Gap down, followed by strong up action, meets EMA resistance and continues the trend downward.

5 min. chart of the resistance setup.

ABX was extended on the day and had gapped up. Wait for a nice entry. 8th bar strong and part of consolidation. 9th bar red doji after a consolidation. First sign to be alert. 10th bar almost an inside bar closing very weak. Time to get short. Covered entire position at 20 EMA.

NFLX, FCX

A boring day. Could not find any good setups. Traded NFLX, FCX (twice).


Wanted to short NFLX on the break of the 4th bar low but did not pull the trigger. Usually a WRB followed by consolidation is a pause for the continuation of the trend but when price takes out the support of the consolidation, it provides a nice shorting opp. A WRB followed by consolidation but price takes out the low of 4th bar low. I just could not pull the trigger. I entered short when price after making a low retraced and found the EMA's as strong resistance. Covered partial at 5 DMA (orange line) and was holding the remaining hoping it to reach S1 which was also the gap support. Price moved sideways below 5 DMA but when the high if the consolidation was taken out, I exited the remaining part. It was just a fake. Price moved to S1.

FCX found support on S1 and formed a base. Strong closing bar followed by 2 inside bar consolidation on light volume. Long on break of strong bar high. Was expecting price to reach PDH (purple dotted line) but exited before that based on 5 min. chart.

Oct 5 - TZA Short

TZA gaps down, tries to rally, hits the downsloping 5 EMA and continues it's trend downwards. Took partial near $25 level, remaining a little below $24.50

Short: ABX, CLF

Short on the break of the consolidation which was also the ORL. 20 EMA acting as resistance.


Weak first bar, followed by consolidation. Flat EMA's. Inverse C & H. Short on the break of ORL. Took partial at S1 and covered the remaining at PDL.

Jan 28 trades

Within PDR but had a WRB closing very weak followed by a NR green bar. Entered short on the 3rd bar. Covered near $37 whole number.




Price action breaking 20 & 50 EMA on 5 min. chart, then retracing only to find resistance from the EMA's and daily pivot forming a doji. Entered short near that area. Covered at PDL.

GG, X

Had 2 trades in GG today. In the morning , shorted it on the break of 2nd bar low. Got stopped out for a loss. Shorted again as shown in the chart when GG tried to rally, found resistance from the sloping 20 EMA and on it's way down formed a NR7 inside bar. Covered at PDL.

X gapped down, 2nd bar breaking ORL. It then consolidated sideways and the 8th bar tried to move above 5 EMA but found resistance from ORL. It was off ORL, off the EMA and closed weak. Shorted on the break of 8th bar low. Covered half at near the whole number and the remaining at fib. extension.

CAAS, RINO, FCX, TNA

This has been on my temp. watchlist after Stewie posted on his blog sometime ago. The stock has been strong recently. Today, it was a little weak. The 2nd and the 3rd bar were inside bar within a WRB but within PDR. I was expecting price to break PDL but it retraced to meet the sloping 20 EMA. 10th bar was a NR7 and an inside bar. Entered short there.

FCX gapped down below PDL. 2, 3 & 4th bar retraced to meet the sloping 5 EMA and 5-day EMA which provided resistance. 4th, 5th, 6th bar were bearish and NRBs. I missed this entry. I noticed FCX on the 8th bar when it formed a very narrow NR7 right after a WRB. Shorted when price took out the low of the NR7.

1st candle forms a big lower tail. Next 7 candles are NRBs. 7th, 8th, 9th are inside bars and bearish. Entered short there.


TNA setup very similar to the FCX trade above. Price moves to 5 EMA, finds resistance, forms bearish candles.

CLF - NR7, Inside Bar on Daily

Yesterday CLF formed a NR7, inside bar within the tail of the previous bar on the daily chart. It was green on green and on very low volume. This have a high probability of an expansion move coming soon. CLF was on my focus list today. It gapped up above R2 today, moved sideways to reach the rising 5 EMA. 3rd bar closed very strong. Entered on the 3rd bar. It consolidated midway where I could have added to my position. Sold at $35.60.



This was yesterday's trade. Found resistance from all the EMA's. In this setup, stocks move up against the EMA's. Candles become narrower forming a bear flag. Best entry is on the break of the trendline.

FWLT, SKF

I'm back. I am hoping to be active at blogging now.

Had 2 trades today. Could have turned into a nice day had I not taken partial in both the trades. SPY gapped up but it appeared to me that it could roll down anytime in the morning. I was extra cautious and took partial in both the trades.

SKF gapped down but appeared to be strong. However, it was unable to close above R2 which provided strong resistance along with the sloping 5 EMA. Candles with long tails near R2 resistance. Took partial along the way and finally exited at 35% FE measured from PDH-ORL.


FWLT strong in the morning when SPY was a bit weak. WR first bar, hit high from a couple of days before which also happened to be the high of this year. I bought based on 5 min. chart on retracement. ORH seems to be acting like resistance and formed a bearish candle. Took partial there. Sold remaining near 35% FE.

Tomorrow we have Crude Inventories at 10.30 am and FOMC at 2.15 pm. 

Day + Swing Trade: ERY - Short

I have been trading APOL for the last couple of days expecting it to fill the gap. Today it did fill but without me :(

ERY (Direxion Daily Energy Bear 3X Shs(ETF) is 3X short energy ETF. I went short ERY today which is same as going long 3X energy ETF.
ERY gapped up (see 5 min. chart) and formed a nice green bar. 2nd bar took the price further up and started the retracement back to ORL forming a nice doji and hammer on ORL, rallying back up near the ORH which now acted as resistance. Entered short when it formed some bearish bar on 5 min. and a bearish engulfing bar on 15min. Would have been nice if the engulfing bar was on high volume. Exited 3/4th of my position a little above 38.2% FE measured from ORH-ORL and am holding the remaining with a target of $24.80. Will see how it plays out. My swing position update can be found here.

June 2 Trades

Early in the morning, APOL tagged the 5 day EMA and bounced off from it and rallied to touch the sloping 20 and 50 EMA. Price stalled there and looked good for a short. The only problem was price was above PDL and that could provide support. Odds favoring low prices were - resistance from the EMAs, ORH, and from 6/20 high and bearish looking candlesticks. Entered short and exited when price formed a green hammer like candle. Entered again 1 bar later and exited where shown.



Also traded SPY in the afternoon for a scalp when it broke down from the base it formed throughout the day. Shorted again when price rallied to the support now turned resistance and 20 EMA where it formed a doji.

ISRG

ISRG gapped up from it's previous day close and formed a strong WR green bar. 2nd candle is an inside tailed bar. Entered long on the break of the 2nd bar high before the OR was taken out because the price action looked strong. After the entry I noticed that there was some nice resistance at 149 level from 5/26. Exited my entire position there. Jamie often refers to matching congestion. So I was expecting a nice consolidation or resistance at this level before ISRG made another leg up and left it alone.

JEC

JEC's 1st candle was strong but 2nd one has a long upper tail followed by some selling. 4th and 5th candle were almost doji with long upper tails. 5th was also an IB and 20 EMA was acting as resistance. Shorted on the break of the IB with target to PDL. All EMA's were in bearish orientation. Would have preferred the 5 EMA to be sloping. It took time but finally did reach the target. Should have looked for long opp. on day when market was uptrending.

SPG