Not All Core

Just to prove that it’s not only about the core stocks when trading through the summer downturn, Friday produced a couple of winners that were most definitely not from the core list.

First up (though only by a matter of minutes), was this little beauty from NKTR:

All standard stuff, and over in a quarter of an hour, netting a four-figure profit in supposedly one of the quietest months of the year. Summer doldrums? What summer doldrums?

Next, YELP:

This trade lasted a third of the time of the previous one, and made about a third of the profit, which seems fair enough. About $500 in five minutes is not to be sniffed at.

Both of these trades were absolutely textbook — literally. Anyone who’s read the book will recognise the patterns and the reasons for entry and exit.

So there you have it. A ‘quiet’ Friday in a ‘quiet’ summer week, and a couple of trades that between them netted more than two thousand dollars profit in about fifteen minutes. Of course, it’s never quite that simple — there was some pre-market work involved in finding those trades. Not much, less than an hour, but it’s often overlooked. Still, my working day was done by half ten Eastern Time, just in time for Mrs W to drag me off for the next item on her summer agenda.

Tesla Ticking Over

While working in summer mode, I’m keeping things ticking over with the odd trade here and there when time, motivation, and Mrs W’s calendar permit. Sometimes that means a few trades in a week, sometimes it means none. Monday offered a chance to grab an hour in front of the screen, but no time for pre-market homework. So it was core stocks only. Fortunately Tesla came up with a nice quick winner, as it is prone to do most days:

Nothing groundbreaking or Earth-shattering or any other metaphor involving destruction. Just a regular pattern trade on a core stock. The exit was quick and at the first target and first sign of hesitation. It made a quick $720 profit, which keeps the old trading account ticking over and takes the pressure off for the rest of the week.

There’s Always Something

Summer or no summer, vacation or no vacation, whatever the day, whatever the weather, whenever the market is open, there’s always something to trade. Something, somewhere, is always making a nice simple, predictable, low-risk, high-probability, tradeable move. Sometimes that’s a core stock, sometimes it’s one from the daily watchlist.

Last time we looked at a core stock that was putting reliable dollars into the bank despite the start of the summer doldrums, so now let’s take a look at one that came off the daily watchlist.

I’ll be honest, I didn’t expect much from CSX at the start. It all went rather sideways, giving nothing away. But when it did go, it went far and fast, just how we like it. In under half an hour it generated nigh on two grand profit. The exit was clearly signaled by the momentum dropping away and a small bounce. All straightforward stuff.

That’s it for today. I’m in holiday mode, so fewer trading days and shorter blog posts are the order of the day!

So Begins The Summer

It’s that time of year when the activity in the markets begins to wane. When thoughts turn from double-tops to crop tops, from shorts to beach shorts, and from breakouts to summer breaks. Summer is here in the northern hemisphere, and traders everywhere are starting to take it easy. Including me. Which is why I haven’t posted any trades for a few days!

Continue reading “So Begins The Summer”

Late To The Party

The two trades I’m posting today have some key commonalities. In both cases I came late to the trade. The reasons were slightly different each time. First up, let’s have a look at my old friend NVDA:

A chart of the NVDA stock.

This was both an early entry and a late one at the same time. Anyone who follows my strategy knows that I have two common entry points in the morning. In the case of NVDA I took the earlier entry, but I took it late. That’s because I wanted to see what happened at the previous day’s high. There’s no point trading directly into a hard ceiling, that would be like walking into a set of automatic doors before they opened and hoping that they would part before we hit them. Better to make an approach, be ready, and wait for the way ahead to be clear. In the end, that level didn’t present a problem, so in I went and rode it until the first sign of the move faltering (coinciding with a target price). That came out at just over a thousand dollars profit for about fifteen minutes in the trade.

Here’s the next one:

A chart of the LEN stock

This was obviously much later in the morning. I had the stock on my watchlist for reasons that, again, will be well known to followers of my strategy. But when the move came, it came very quickly and not while I was watching this particular stock. Missing moves is all part of the game — we cannot expect to catch every trade, we must accept that some will get away. Normally I would have let it go. However, the previous day’s range came into play here like with NVDA. As the price dropped through that significant level with some hefty momentum behind it, it was a clear signal that there was more to come. I jumped aboard and rode it down to a logical exit. That one proved more profitable, taking almost two thousand dollars in about fifteen minutes again.

Two trades, taken in opposite directions, both late, and both making use of the previous day’s range. It’s funny how sometimes there’s a kind of symmetry to the day.

We Will ROKU

A couple of nice little trades to post today. First up, Match.com:

A stock chart of MTCH showing a winning long trade

A nice easy entry right off the bat. Volume was a bit low I must say, but the momentum was there and carried it to almost $500 profit in under ten minutes. After that it all went a bit sideways and unpredictable, and we were better off out of it.

Next, a bigger winner from ROKU:

A stock chart of ROKU showing a profitable trade to the short side

A bit later than MTCH, and this time to the short side. The setup was not as clean as the price had crossed the EMA, but that’s only a yellow flag, not a red one.

As is so often the case with ROKU, when it dropped, it went far and fast, blasting through the most obvious target without any difficulty. The exit came when momentum turned. Reading that tape is what it’s all about.

Two trades, both about ten minutes. One had a better setup, but the other one generated three times the profit. Just goes to show that we know nothing, and can only trade what we see in real time.

A Late Morning

It’s been a relatively quiet week on the markets (a busy week away from the screen, but that’s a different story). Tesla has been coming up with the goods, and I’ll share another trade from Elon’s Twitter-powered stock in a moment. First though, here’s a nice — if late in the morning — little trade on VTR

A VTR stock chart

After a brief spurt of activity at the open, this one went sideways for a long time. I thought it was probably a bust, but there’s a reason we continue to watch the watchlist for as long as we are trading the session: we never know what’st going to make a move.

The move it did make was not exactly spectacular, but we got more than 50 cents out of it in about fifteen minutes, which is better than…well you know what. 

Here’s that Tesla trade I mentioned before:

A trade on TSLA

This also came late in the morning session. It was typical Tesla; like their cars in ‘insane mode’, it took off suddenly and moved like a rocket, and stopped almost as abruptly. Not the biggest TSLA trade of the week, but taking more than $600 in under five minutes was nothing to be sniffed at.

Tesla Saves The Day

It was a quiet start to the week. A few moves, but relatively subdued. Tesla though, can usually be relied upon to give us something interesting to do. This is what we got:

A Tesla stock chart

It was a fairly straightforward trade. The only thing to remark is that it looked like there might have been an earlier entry. Why didn’t I take it? This is a classic case of the chart not telling the whole story — although it did leave a massive hint. The answer of course is that there was no momentum behind the first move, as we can see from the lack of volume.

In real time, when we are watching the chart unfold, we can’t wait for the volume bar to finish printing to let us know whether to enter or not — by then it’s too late. But in real time the lack of momentum is clear on the tape.

When the second move came along, the volume and momentum were there to push things along nicely.