Trading the markets with Alan Rich.

[eurotrader52]

NTAP, SEPR, BJS,CENX, BRCM FLS, clear triggers today

Morning triggers (CENX, BJS, NTAP) afternoon gainers (BRCM, SEPR FLS) never had a reversal period without a trade from the list. Adjusted buy stops for partial positions still remaining. 1/3 to 2/3 profits taken with 1/3 left to run at new stops. FLS steady gainer off 52.80 and a "hold" here. Added Call option positions VLO 62.50 calls VLOFZ for June and AKS 12.50 June calls Hedged the SLB long position with 65 puts for June There is no reason to 'throw darts' at the market for pennies when you can "anticipate breakouts" with prior watch lists.

"Anticipated 20/20 Buy Set-up 30 minutes before the market close." in the last hour of trading (from yesterday and new ones for Tuesday) can prove eminently useful to capture early reversals. It was easier to pick up some reversals after "the pause that refreshes".
These scans can either get you in the last hour of trading the prior session, or for more conservative trader, entry can be with trigger alerts the following session..

 

[jimmy1jag]

Hi Guys,

This has been an interesting week for me on the hot stocks front. Although my prime focus is on Nasdaq stocks, I do keep an eye out for UK hot stocks. For me the miners have offered opportunities that I don't ever recall seeing in the past with daily ranges of up to 250 points! This has provided me personally opportunities to apply day trading skills to the UK market and get the sorts of results, which are only normally attainable on US stocks. stuff!

My personal US fave this week has been JOYG, offering many opportunities. Let's see what next week brings. Have great weekend guys.

P.S. Dave, thanks for the stuff on the S&P futures pit- well interesting!

 

[dvdh]

P.S. Dave, thanks for the stuff on the S&P futures pit- well interesting!

you're always welcome,

-dave.

 

[eurotrader52]

Shorts: QQQQ, SPY, LVLT, EBAY, NIHD, BBBY (possible swing shorts)

QQQQ, SPY, LVLT, EBAY, NIHD, BBBYGreat reversal day. The QQQQ and SPY positions are PUT (swing puts hopefully) while a short position is going to be covered into the close (partially or all) Will Increase position in the short itself into the 3:00 to 3:30 area. NEVER TRADE against market direction

In a today's bearish market environment the strength of the trend is to the DOWNSIDE. Bearish patterns are being "milked for profits" to the short side. What we had was a bearish pause (bearish pennant) in what looks like might be a continuing downtrend. The predominance today of the BEARISH pattern has shown the 'recovery' pattern of the last 3 uptrends to be false. Trade carefully taking at least 2/3 of any short profits into the close and lowering stops. NEVER THROW darts agains the prevailing trend, but rather short the rally.

I did expect to move into AKS but it wasn't meant to be. XMSR did actually buck the trend, but I never took it preferring easily shorting plays instead

 

[eurotrader52]

GREAT Breakdown after basing at lows .. Locking in profits ... lowering stops..

AT 3:00 REVERSAL PERIOD we look for a breakdown after a basing during the doldrums. If there would have been a failed breakdown, the dip might have been buyable by 3:00. We didn't not have a period 3 higher highs on the 5-minute candlestick patterns (volume of course a factor to consider) Looks to be a continuation of the breakdown. In order to confirm a possible continuation of the downtrend, I would look at the 15 minute and 60 minute charts for confirmation. Here is where a lot of "bear traps" are ready to grab in the trader who is getting too anxious to make a profit and call a "reversal" STAYING SHORT probably into the last trading period (3:30 to 3:45) STOCKS IN MOTION TEND TO STAY in MOTION.

 

[eurotrader52]

HHGP, ANDE, XMSR (morning trigger) bucked downtrend

If you had put in a buy stop on these plays (5/26 watch list), it would have been easily possible to have a profit on the long side. The benefit of "watch lists" and "hot stocks" is picking up the upside(downside) at a trigger point and NOT jumping into a moving stock from A NEWS REPORT in 'realtime' or any catalyst that will surely be over and done with by the time you've hopped into the trend. Personally I had to dump 1/3 position of my leftover long plays (not of them gapped down so it was easy getting stopped out with a gain or breakeven). I was looking for the short side early in the session.

 

[eurotrader52]

HOV bull flag in downtrend move through end of week.

HOV setting up for possible bull flag in downtrend (a la TOL)

 

[eurotrader52]

ALERT: QQQQ breakdown Bearish Reversal on INCREASED volume

QQQQ posted earlier on Tuesday's trading session has broken down both on the INTRADAY 5-minute chart and confirmed with the daily chart (see below) Higher than average volume on the both the morning breakdown and the IMPORTANT last 30 minutes of trading signify that many were dumping the QQQQ. Potential for continued downside (same with the SPY) See link for the Evening Star Candle Formation http://www.streetauthority.com/terms/e/eveningstar.asp

 

[eurotrader52]

HOV Jun 2006 35.0000 call mere pennies for potential rebound

HOV is holding its earnings report and can be good for a multi day rally, of course hedging any long bets with some intraday SHORT plays in LEN, and HOV. Will be out of shorts by the end of the session though. All prior attempted rallies in both LEN and HOV have failed. For the past two weeks, both LEN and HOV have consolidated in a bearish manner with sellers in abundance. Looking for a recovery (perhaps like TOL) but will only take a small 'risk tolerant' position in CALL OPTIONS.

 

[eurotrader52]

EBAY only short not stopped out now next target is 31 with ultimate target 30

EBAY continuing SHORT

 

[eurotrader52]

HHGP continued upside (up yesterday on down day) very nice!! HOLDING target 12

HHGP take profits in the 12 area

 

[eurotrader52]

AAPL stabilization in testing double bottom in 57 area (60 calls June closing in)

Massive pulldown in AAPL ready to accumulate June 60 calls in the 57 area.

 

[TrendTracker]

Hi,

plz check out NOVL. It's been falling all morning.

 

[Mr. Charts]

Hi TrendTracker,
Thanks for that - well done.
I saw the story but decided not to put it on the HOT list because it was below the $8 parameter I usually use so it sneaked in under the radar. However, I checked it out when I saw your post and got a very nice scalp, thank you. An excellent contribution ;-)
I have now lowered the radar level ;-))
Take care,
Richard

 

[TrendTracker]

Hello Richard,

thanks for your compliments. I was a hoping someone would see it. I'm glad to hear it was you my friend!

Apart from NOVL I've found today a bit sluggish and difficult to trade. Yes, there have been some moves but the price action has been a real challenge for my style of trading. I love to just go with the flow and thanks to You Richard I've learned to read L2 pretty fluently, but when there's no good flow today and I find that a lot of my trades just don't go anywhere. Or they see-saw a lot before moving... at least enough to scare me off the trade

Is it just me, or have the others had a difficult day?
How's your day been Richard?

 

[Mr. Charts]

Hello Richard,

thanks for your compliments. I was a hoping someone would see it. I'm glad to hear it was you my friend!

Apart from NOVL I've found today a bit sluggish and difficult to trade. Yes, there have been some moves but the price action has been a real challenge for my style of trading. I love to just go with the flow and thanks to You Richard I've learned to read L2 pretty fluently, but when there's no good flow today and I find that a lot of my trades just don't go anywhere. Or they see-saw a lot before moving... at least enough to scare me off the trade

Is it just me, or have the others had a difficult day?
How's your day been Richard?

Good evening my friend,
Actually, personally I found it to be another very nice day.
I did get chopped out with small losses in RHAT, CTSH and RMBS but all three then triggered again and produced very good gains on the second set up trades.
I also got substantial gains on AAPL, ADCT, HAL, BIIB plus of course a nice scalp on your NOVL; also a scalp on ADTN, so 9 wins from 12 in the afternoon session.
All except AAPL and NOVL I alerted in advance elsewhere on the web as usual.
In the evening I've had two scratch trades in BRCM and QCOM and three large gains in AMZN, MRVL and RMBS.
All in all 12 wins, 2 scratches, 3 losses out of 17
I'm very pleased you feel I taught you my micro-analysis reading so well that you now feel fluent. That's very satisfying ;-)
It's great when you can spot these potential moves in advance and we all help one another as with your NOVL. Someone I taught in a live session a few weeks ago then taught me how to set up ultra fast entries and exits on the IB software. Hopefully you are now doing that yourself; if not email me for some details and I'll be delighted to help you.
Good hunting with the usual mixture of core stocks and HOT ones ;-))
Best wishes,
Richard

 

[samuelhogg]

Please can someone confirm my understanding of the level 2 screen? There is also a question regarding the time and sales.

Does different MM's have different trading personalities?

Cheers

 

[TheBramble]

That's an interesting one Sam.

If you mean in relation to their 'use' of LII and the degree which they use it (or not) as a means to influence, yes they do have different characters. Spooky. Just recently had an exchange with another member on this very topic.

What was your other question in relation to T&S?

edit: Sorry Sam, only just noticed your boxed text. Yes, Bid is those indicating a potential Buy position and Ask is those indicating a potential Sell situation. But there are MMs and ECNs listed, not just MMs.

 

[samuelhogg]

Thank you Bramble.

Did you see the question regarding the tape?

Is there somewhere where I can find details of the character/trading personality of the MM's?

Samuel

 

[TheBramble]

Thank you Bramble.

Did you see the question regarding the tape?

Sorry Samuel, didn't notice it the first time.

Unless you've configured your T&S screen differently, red generally represents trades going through at the bid price. Not sure what you mean when you refer to MMs in the T&S though. Could you clarify?

Plus, this isn't the best thread for this discussion as it's more for Alan Rich and his trades rather than general discussion of LII. If nobody minds then fine, otherwise perhaps the mods will move it to the LII forum.