Thursday, July 9, 2009

ICE TRADE In Review


I got a few emails today asking me how/why i chose the ICE long trade today. It was a $3.5 winner for us today.

Ok, here's the scenario: Stock was down 18 points or a whopping 28%!!! in only 2 days. So the stock was on my radar just for that reason alone and knew that a snap back would be in order. Once the indexes and ICE GAPPED HIGHER today, I kept close eye on internals and i knew that if internals were strong and i saw many BIG movers in the early going then any gap fill on the indexes and many stocks should be BOUGHT. See BIDU, OIH, ICE as perfect examples of GAP FILL trades that took place today. Internals was the KEY to this trade. If internals were poor, then this trade would have most likely failed or at least not worked as well. Internals measures the UNDER THE SURFACE temperature of the market. USE the INTERNALS well and you will add a serious edge to your trading!
at

12 comments:

  1. Jay JayJuly 9, 2009 at 2:47 PM

    First time on your blog. Very nice trade. And a great explination of what you were doing. I too like to trade those Gaps and for the most part they are very strong trades. I would like to link your blog to mine if you like. Just drop me a note and I'll put it up on my blog roll. If you like my site if you want to place a link feel free.
    www.tradingwiththeaveragejay.blogspot.com

    Jay

    ReplyDelete
  2. StewieJuly 9, 2009 at 2:50 PM

    hi jay. thank you and i added you. good luck.

    ReplyDelete
  3. NYC TraderJuly 9, 2009 at 3:13 PM

    You Sir, are the Master of Gap Trade!

    ReplyDelete
  4. AnonymousJuly 9, 2009 at 5:41 PM

    how do you keep track of internals? A/D??
    does that show up intraday?
    thx

    ReplyDelete
  5. StewieJuly 9, 2009 at 5:46 PM

    Thank you mr. NYC but there are much better gap traders than me. How about Wallstreet Warrior!!

    ReplyDelete
  6. StewieJuly 9, 2009 at 5:47 PM

    anon:

    A/D lines is the way i keep track of the internals. also watch up vol vs down vol. check out this link intra day: gives pretty accurate info for the most part:

    http://finance.yahoo.com/marketupdate/overview

    ReplyDelete
  7. Jay JayJuly 9, 2009 at 9:50 PM

    Hi Stewue

    All taken care of you are up on the blog list. Thanks for your list too. Stay well and drop a comment if you get a chance. Always like to hear what folks think of my blog ( good or bad )

    Jay

    ReplyDelete
  8. BlueJuly 9, 2009 at 10:11 PM

    I use the 1min TICK to track buying and selling pressure. It has added a serious edge to my trading. My TICK chart is right under my S&P chart.

    -1000 = selling pressure
    +1000 = buying pressure
    above 1000 = massive buying pressure

    You can also think of it in terms of RSI +70 and -30 for overbought and oversold zones for scalping.

    ReplyDelete
  9. BlueJuly 9, 2009 at 10:15 PM

    BTW, beauty of a trade Stewie!

    Look at CME on the daily chart. Saw a pretty strong rejection of the 50day (was pennies shy of hitting my short target today). ICE usually follows CME or vice versa. I've never come to figure them out 100%.

    I'd like to know what created the massive distribution in them this week.

    BLK this morning was a great long also. It opened just below its fib set up from yesterday and look at that huge bounce right at the open. 3 pt move with 8,000 shares traded. Crazy shit.

    ReplyDelete
  10. StewieJuly 9, 2009 at 10:35 PM

    blue: i like that TICK indicator. i have never used it but many of my members use it and they also say it is pretty reliable to getting on the 'right' side of market's flow.

    ReplyDelete
  11. AnonymousJuly 10, 2009 at 6:11 AM

    Massive distribution in CME/ICE this week a result of "talk" of further restricting commodities trading via increasing margin requirements to "try and tame volatility" (another stupid idea by the powers at be, but what else is new?).

    ReplyDelete
  12. StewieJuly 10, 2009 at 6:29 AM

    ah ha. now it all makes sense. thanks anon for the CME/ICE update.

    ReplyDelete