Friday, January 3, 2014

Momentum Trading ROUND NUMBERS

Hey folks. 

I wanted to share with you a cool "momo" trading technique i use all the time in my personal trading. I think it will be helpful to many of you especially the more short term traders here. 

As many of you from the chat room might know, i love to trade around "ROUND NUMBERS" so when prices of Momentum stocks approach ROUND NUMBERS like $5, $10, $20, $50, $100 etc. I pay especially close attention as i am aware if these numbers are broken, they can catapult stocks even higher. Almost like a "turbo boost" after a Round Number breakout.  

So for example: check out CCIH and BWEN : these are two stocks i traded today and here's what i saw in these plays: 

First of all , CCIH was emailed to ART OF TRADING members last night in the watchlist.. Breakout was $10.. Now, for my style of trading.. i typically prefer to enter BEFORE a breakout area IF and ONLY IF i feel like a breakout is "imminent". Here's the DAILY CHART in CCIH: 




In the above CCIH chart: Can you clearly see a  "CUP and HANDLE" pattern there?  I Do : Hopefully you all saw a pattern that looks like this? 







Now, here's how i traded the CCIH intra day chart: 

Once i saw the CCIH 'CUP and HANDLE' on daily charts. I realized that this stock has very big potential to break over $10.. Stock was trading at $9.60: at that point in time.. I quickly entered buying 3,000 shares at an average price of: $9.62





Booked  $2,000 on this trade all in just under 15 minutes worth of work... CCIH is trading higher than my exit but that's okay. Happy with gains and the exit. You cannot buy the exact bottom and you cannot sell the exact top. 



Even if you bought it late or even if you bought it at the $10 breakout(entry): CCIH woulda still been good for a cool 8-10% gain . 





Another Setup i played today and also belongs to the $10 "Round Number" Technique : 

BWEN: here's what i saw on this DAILY CHART : 





This setup was also a  'CUP & HANDLE' pattern that was setting up just under $10 resistance... Stocks that base for a few days in small narrow ranged candles for a few UNDER a strong resistance level are very appealing to me.. Because once they crack thru resistance, they can make nice runs. 



Picked up 5,000 shares of BWEN at an average price of $10.17 > so i was a little late with my entry on this one as the ideal entry SHOULD have been closer to $10.00 but i was a little distracted and missed the first entry... That's okay tho, since i felt like BWEN still has more run up left in it. 




The overall market was showing signs of weakness as this trade was developing so i opted to exit with a $1300 gain and move back to ALL CASH at that point. Don't over stay your welcome and what ever you do never allow a nicely GREEN trade go RED. Raise stops, Trim some gains etc.



Conclusion:

In the two trades shown above , i day traded two "momo" stocks that were flirting with that KEY "$10 ROUND NUMBER" area... In CCIH i entered AHEAD of the $10 breakout anticipating a breakout which worked very nicely(even if you got into CCIH on that $10 breakout entry, you woulda done well) . 
For BWEN, i entered a little bit late but was aware that BWEN did the hard job which was to breakout over $10 so chances were very high it was gonna keep running. When stocks start to approaching ROUND NUMBERS or breakout over ROUND NUMBERS.... pay very close attention !

Even tho, i personally day traded these two ideas, most of the ideas that take place at AOT or alerted to members are intended to be / normally are SWING TRADES. 

Any questions, comments or feedback welcomed!






Sunday, December 22, 2013

7 Setups To Watch On Santa Week









Stewie - just wanted you to know what a great trading week (thanks to you)  I'm having and how much I appreciate you sharing your hard work!  Blessings to you my friend.

Rob S. (Brand New ART OF TRADING Member just completed his 7 Day FREE TRIAL) 






ART OF TRADING  Member Reviews : HERE!! 
 




Sunday, December 8, 2013

3 TOP Trade Ideas For Next Week



BONT : A good looking BULL FLAG setting up right now. 


BYD: a nice looking BULL FLAG setting up in this stock with a high 12% short interest


WIT : a very nice looking base setting up in WIT : a breakout looks imminent at this point.



"Stewie,
I wanted to expressly thank you for all you do, all the traders you help, (me especially!)at this Thanksgiving time of year. Thank you for all of your hard work and dedication all year, year after year. Thank you for your insights and teaching and great charts and setups. You have helped me and my family tremendously, and I know you have helped many, many others around the world. I mean it from the bottom of my heart.

I wish you and your family the best and hope you continue to serve in the fantastic ways you have been already. It means more to many than you will ever know.

Happy Thanksgiving,

Wayne
Loyal Student"





ART OF TRADING  Member Reviews : HERE!! 

Thursday, November 28, 2013

10 High Quality Stock Setups For Thanks Giving

Happy Thanks Giving fellow blog readers! 

Wanted to share some of my top stock trading ideas to watch from here until year end. 

Cheers!


 FB : bullish FALLING WEDGE" pattern.

FSLR : smooth controlled pullback to test its 20 day Moving Average . 

IRE: Bullish consolidation

LVS: Bullish consolidation


MPEL: bullish consolidation 

NSC: bullish consolidation 

TRIP : bullish FLAG pattern

TSLA : Falling Wedge, bullish bottoming pattern 

TW:  bullish consolidation 

WYNN:  bullish consolidation 



Received this email from a fellow 'ART OF TRADING' member... made my DAY and WEEK!! 

"Stewie,
I wanted to expressly thank you for all you do, all the traders you help, (me especially!)at this Thanksgiving time of year. Thank you for all of your hard work and dedication all year, year after year. Thank you for your insights and teaching and great charts and setups. You have helped me and my family tremendously, and I know you have helped many, many others around the world. I mean it from the bottom of my heart.

I wish you and your family the best and hope you continue to serve in the fantastic ways you have been already. It means more to many than you will ever know.

Happy Thanksgiving,

Wayne
Loyal Student"





ART OF TRADING  Member Reviews : HERE!! 





Friday, October 11, 2013

Reviewing The AOT "TOP PICKS" This Week

Hey folks

Wanted to quickly update the AoT "TOP PICKS" that triggered this week. It was a super volatile week which is very typical of October but as you are going to see the AoT "Top Picks" did quite well despite the volatility BUT you needed to be proactive and work to MOVE STOPS , TRIM gains, and/or actively manage stops losses as many of the triggered setups did work but you needed to be quite involved when the market is swinging wildly from one direction to the other. 

Hopefully, they were helpful to you. As always, questions, feedback, comments are welcomed! 




CX : a short setup which triggered below $11 and hit the 10.50 first target before reversing on mrkt rally.


GCAP : triggered over 12.50. Ran up about 8% before reversing lower today.


GGAL : triggered over 9.95 and is up about 7.5% since then. Still looks strong.


GSVC: triggered and went up 2.2% before reversing lower as market sold off hard mid week.


MAN: it held up thru out market's selloff and triggered friday morning and ran up 2% . Still looks very strong


TIF: short setup triggered below 75.70 and dropped 2.7% before reversing on mrkt rally. 




Here are some other setups that triggered that weren't AoT "TOP PICKS" 

TCK : Short setup triggered and dropped 3.6% before reversing with market's rally late in the week.



VCLK : short setup triggered and felt 7.8% before reversing with market's late week upside move.


WLT:  long triggered over $15 and ran up 4.40% before falling on market's early week selloff.

RMD: triggered and is up 3.30% since then. Still looks strong.


SYRG: triggered over 10.65 and hit the 11.00 target and then some!


Check out this video on "HOW TO PLAY The AoT BREAKOUTS" 




Here's some cool feedback i got today from an AoT member 


  "Just letting you know that I appreciate your work and like your short term approach.
I have plenty of successful trades using your work.  And, everything goes well as long as I respect the stops on the downside for the ones that don't work out.
Sometimes I will trail stops on winners on part of the position (for a while) instead of always selling out.   Obviously, that's good sometimes and not others.  In this case, it worked.
As one example, I bought SBGI at 32.15 and sold this morning at 34.01.
Also, you helped me get into NXST just below 37 back on 9/18.  I still have part of that position.
I find that it helps to keep an eye on your recommended stocks well after the recommended date.  Often, the winners will create new buy  opportunities in the following weeks (at least in a bull market).
Yes, I make plenty of mistakes too (my goal is not even to be right 50% of the time), but living to fight another day is the key. 
Thanks again for the ideas you generate"

Bill M. 



                                                     ART OF TRADING  Member Reviews : HERE!! 
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