On the first day back from the break, I took the same trade a Jamie, which I think is a good sign.
By the time I sat down this morn, the big gap downs had taken place. Normally in the past, I would be looking for a point to get short. After trying that numerous times, I found that once a stock has gapped down and exhausted itself, it often will find a base, and recapture the 5 MA. At that point it is just a case of finding a good candle to enter off of. So today I was looking to get long.
GES provided the opportunity……! After gapping down, it had capitulation “type” volume and formed a bottom (better seen on a 5-min char). It then rallied up to the 5 MA, and formed a nice four bar base. Two of the bars had long lower tails, not unlike a hammer. It recaptured the 5 MA on the 10th bar, which was my sign to look for an entry on the break of that bar,s high. That happend on the next bar. I placed a stop at the bottom of the previous bar, and it was then just a case of watching it ride the 5 MA. I was ready to take a partial when it hit the high of the ORH, but it pretty much just blew through it. It sold it with about 5 min left in the day, when it came back below the high of the second to last 15-min candle (once again better seen on the 5-min chart).
Good for a 7+ R return.
I also started building a longer term postion in AAPL today. After the announcements today, I took a tester postion, and sold calls against it. I will detail this position and strategy more in the next few days.
