Friday, January 30, 2015

The 11AM Avalanche Wedge

Hey everyone,

I wanted to share a post on a "DAY TRADE" setup i look for daily. I call these the 11AM Avalanche Wedges. Over the last few months, what i have noticed is around 11AM (somewhere between 10:30AM and 11:15AM stocks that fall in an "avalanche" manner intra day, tend to find bottoms around 11AM). I don't know why or how it happens, it could be Algo related. Not exactly sure why but i see often enough where i take these intra day trades often. Here's a perfect example of a trade i did today in AMGN.

This trade was good for a quick $1,700 profit. 

AMGN - 10:56:53
Bought 2000s @ $152.124 - Total: $304,252.75
AMGN - 11:09:44
Bought 1000s @ $151.825 - Total: $151,829.75
AMGN - 12:00:27
Sold 1500s @ $152.5341 - Total: $228,791.34
AMGN - 12:02:53
Sold 1500s @ $152.7177 - Total: $229,066.73 

The key is to find a solid company or ETF: Stocks i like to use for these trades include:  NFLX, AAPL, AMGN, IBB, SSO, TQQQ, AMGN, BIDU, GOOGL . You get the idea.

I like to enter in 2 or 3 pieces by slowly layering into the trade as the stock starts to wedge and show signs of sellers "drying up". Has to be a very sharp selloff from the open, a GAP UP that fades in an avalanche selloff that forms a WEDGE is the most ideal setup.

Hope this helps!

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