BMO – ES -5.00 and NQ -8.00 futures are lower about 60 minutes before the open in pre-market trading and point to a lower open…
TLT is down 28 cents and the Euro is down 92 pips in premarket trading and is breaking below new support at 1.3861…
NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX and PCLN are lower in pre-market trading…
Look at GMCR and SBUX which are higher, after entering a business agreement, on heavy volume in pre-market trading…
Dave’s Insight for Thursday: Be prepared for a break of support. The SOX break of support could lead the broader indexes to do the same. Continue to follow your rules, look for breakouts up or down, support bounce and divergence entries and continue to enter when you see the signal…
SPX
Resistance: 1,321, 1,330, 1,344
Support: 1,311, 1,300, 1,281
Quoting Down – GOOG, AAPL, PCLN, NTAP, BIDU, AMZN, WYNN, CRM, JEC, SLW, CLF, UCO, CAT, DECK, SWKS, SLB, GS, RVBD, CMG, DE, POT, HUM, CRUS, FAS, VLO, FCX, X, V, SNDK, LVS, SMH, PCX, WLT, TIF, SWN, TLT, URE, GLW, LRCX, INTU, MCHP, FSLR, NFLX, JOYG, BRCM, KLAC, NWSA, MICC, FFIV
Quoting Up – GMCR, MCP, FAZ, CAM , SBUX, ISRG
3 comments:
Thanks Dave!
I have been working non-stop almost 24/7 since last July when I went full-time into trading. In September 2010 I started live trading and made approximately 130 live trades through the end of February. The weekend prior to last week's ATA Workshop in Phoenix, as I put together a spreadsheet and looked at fundamental criteria on my trades. Then you came into town and I learned quite a bit at the workshop. After the event last week I analyzed the spreadsheet and learned that 87.5% of my swing trade winners met specific criteria; 90% of the losers did not. I reduced my watch list from 149 stocks down to 34 stocks; one of those that met the criteria was GMCR. I placed the trade and got filled on 3/3/11. My target was $50.24 but after reading your post this morning I cancelled the stop and sold right after the open for twice the profit; I made $3810 486.90%. Since the workshop I have been trading based on the setup instead of ROR% and I updated my profit management rules to better protect profits. I will keep you posted.
Cheers,
David Ghai
File this under: "Sometimes it's better to be lucky than smart."
3/10/2011
On inside information (just kidding) ... more like a breakout of resistance, I bought five contracts of SBUX $33 Apr 11 YESTERDAY before the close. Today, the $33 Call has a delta of 0.88. Question: Should I stay in the trade or close it out and count my paperProfits?
... Answer ... WHY NOT BOTH?? ... ROLL IT .... sell the $33 and buy the $37 strike, pocket ALL the profit AND stay in the trade in case SBUX continues to rise.
I just rolled to the ATM $37 and pocketed $1,500 (not bad for one day) and am staying in the trade for free.
Best,
Steven R.
Dave,
I wanted to share my best trade to date here. GMCR! March 45 calls @ 1.30. Scaled out today @ 15.00, 15.50 and let the rest run with a tight stop to my target of 62.29 (62.89 calculated) where I placed a mkt order that filled @ 16.95. I would never have figured out a price target or been able to manage that trade from my entry without your help over the past year Dave. Thanks!!
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