Breakout Trading using Time and Sales

[amit1986]

Previous two 5-minute candles have failed to go below the $26 whole number implying that previous resistance has become support. EMA(10) has nicely enclosed the price activity over the last several candles. Therefore, the EMA(10) could be used a potential trailing stop after it goes past the entry.

 

[amit1986]

Long HGSI from 26.25. Momentum was excellent on the breakout.

Target: 27.00

 

[amit1986]

Half position closed at 26.70. Now using the EMA(10) as my exit on the second half or the whole number of 27.00, whichever comes first.

 

[amit1986]

Price has gone through the 27.00 whole number on very strong buying pressure. Staying in the trade and using the EMA(10) as my exit. EMA(10) currently at 26.72.

 

[amit1986]

Stock is approaching the 28.00 whole number. This is my next target to close out the remainder of my position. No point in getting greedy risking your profits disappear.

 

[amit1986]

Position closed at 27.32 due to extensive selling pressure on Time and Sales.

I will post a chart of this trade and more details on entry/exit a little later in the evening (Toronto time, which is Eastern Standard Time).

Amit

 

[amit1986]

HGSI Trade

Here is a picture of the chart of HGSI on 5-minute candles.

There is a slight correction to my previous post whereby I mentioned the stock was making all-time highs. It was not making all-time highs as it broke out of yesterdays high, but rather, a quick glance at the monthly chart indicates that the stock did break out of a very long and extensive consolidation since mid-2003.

The stock did break out initially but Time and Sales was telling me to stay out as there was no momentum. Once momentum picked up and there was a surge in buying pressure, I took the entry, getting filled at $26.25. I closed half my position at $26.70 to lock some profit as some selling pressure arose (as can be seen by spike of volume corresponding to my position half-exit candle). The remainder of the position I closed at $27.32 due to extensive selling pressure on the Time and Sales.

Amit

 

[amit1986]

Earnings season still presenting lots of potential trades! Also, today retailers report Same Store Sales data, which adds more stocks to the watch list. Some of the notable ones today include: ARO, ATPG, QCOM, WFMI, and VALE.

GRMN was downgraded by RBC Capital Markets today, which may add further to the selling pressure it experienced yesterday.

 

[amit1986]

MDT and QCOM looking like they could present great long trades.

 

[amit1986]

MDT looking quite good for a breakout of the high. $38 resistance has now become support. High of day = 38.17. Target entry = 38.20 if Time and Sales confirms momentum.

 

[amit1986]

Some fairly interesting stocks to watch today. Earnings season is dying down a little, so there are a relatively little amount of stocks to watch today - approximately 25. Focus is on Gold stocks as gold is continually making new highs (ABX, GOLD).

Some other stocks I am watching include MT, MCD, and ADBE.

 

[amit1986]

RSH setting up for a break to the upside

 

[amit1986]

Long RSH from 20.34

Target: 21.00

Stop: 20.35

 

[amit1986]

RSH closed at 20.39 due to selling pressure and strong resistance around 20.50 area. If it breaks again, I may take an entry again.

 

[amit1986]

Got a few stocks to watch today. Besides the all-known acquisition between HPQ and COMS, JDSU, WMT, AMD, and BRCD. Nothing specific setting up at the moment, though I am keeping an eye on WMT.

 

[amit1986]

There have been a few breakouts, but Time and Sales never confirmed an entry on most of them. WMT did break to new highs prior to 10am, but Time and Sales never showed enough momentum to confirm the entry. Did take two trades, but momentum suddenly turned around and I was quick to get out and breakeven on those two trades.

 

[amit1986]

RINO trading up from yesterdays close in pre-market significantly. Now up by more than $4 @ $27.90 from yesterdays close of $23.38. This is due to better than expected earnings it posted this morning.

Lots of other stocks on the watch list for today, will post some a little later.

 

[amit1986]

Some other stocks to watch today: DIS, ANF, COST, JCP, LVS, and SUN.

Also, I've put an alert on URBN to remind me when it reaches 34.25, which is the 52-week high for the stock. A break out of 34.25 could spark some buying pressure.

 

[amit1986]

Watching MOS with a view of taking a short. Previous days low, which was support, has now become resistance. Low of day = 48.75. There is also the formation of a slight descending triangle.

 

[amit1986]

Although the markets are closed right now, I will be keeping an eye on SPWRA during tomorrow's trading session. The company reported that its internal review identified "unsubstantiated accounting entries". As a result of these news, the stock is trading down post-market -6%.