Hello everyone. Hope you all are having a great weekend so far. Mine has been quite busy, but I’m finally ready to get this update posted, so let’s go!
What a wild day on Friday! From a green open to a faded gap and then back and forth from there. We ended up closing in the green, but only by 41 points on the DOW. Volume was very strong (even stronger than Thursday) as we kissed the 100 SMA on $SPY and just missed touching it on the DOW. The candle from yesterday was a doji on both indicies which COULD signify a reversal back bullishly. However, MACD and Stochs are still bearish so I would not just assume that we are heading back up until we get some sort of confirmation. Ideally I’d like to see a close above 1600 on the S&P which would give me some moderate confirmation of a bullish reversal. Time will tell, but there should be plenty of good trade setups on Monday and the rest of the week. See chart below of $SPY:
REVIEW OF YESTERDAY’S PICKS:
$DE: You would have gotten triggered in at 82.89 and could have gotten out at 81.75 for over a dollar move. If you held for the day, you’d have been up 0.42 cents. Great trade!
$DIS: Well it is possible that you could have gotten triggered into this trade, but to me it just didn’t feel right. I would not have taken this trade. If you did get in, you would have gotten in at 62.30. You could have gone up about 0.40 cents if you sold at the day’s low, but realizing we were at the low of the day would have been very difficult, unless you were trailing your stop, then you may have broken even. If you held for the day you would have lost 0.43 cents. Not a good trade.
$FDX we did not close below the target so no trade would have been triggered.
$UA: I wanted to get into this trade, but we were down so big so early, I was a little afraid of it so I stayed out. Had you gotten in, you would have been triggered at 56.85. Selling at the low of the day would have given you 0.59 cents. Holding till the end of the day would have put you down 0.03 cents. Not a great trade. You could have made some money if you trailed your stop.
$JPM would not have worked out
$AAPL you would have gotten triggered in. I did not get in, but I am seriously considering it on Monday with 15min confirmation.
$BIDU you would not have gotten triggered
$CSX you would have gotten triggered in at the end of the day. I wish I had taken this trade, but I was not at the computer at the end of the day.
$FCX: you would not have been triggered into this trade
$HAL: You would not have been triggered into this trade.
$IBM: This is another trade I would have liked to have legged into.
$O: You would have gotten triggered in. Profits on low of the day, still a small profit if still holding at the end of the day.
$VLO: Great day trade. I took this one. I’ll cover it in the next section
$DVY: You would have gotten triggered in. Profit if sold at low of the day, would have lost if held until close.
REAL ACCOUNT ACTIVITY:
$JPM CLOSED (37% LOSS) OUCH! This was a really stupid trade from the beginning since I got in on a whim and then I did not manage my loss. However, this is a perfect trade to learn from, and believe me, I will learn going forward.
$VLO OPENED+CLOSED (+24% ROI) I was watching this stock in the AM and was able to get in after I saw the stair step forming between 10:00 and 10:10. I was able to get out after the tweezer bottom formed. I am very proud of myself for recognizing when to get in and out of this trade. One of the best trades I’ve done in my short career. I’m hopeful for more in the coming days and weeks. I feel like my analysis is getting stronger, but time will tell!
Picks and observations coming up tomorrow. Goodnight all and GO BRUINS! 🙂