Today acted more like the market I’ve come to know. I missed most of the day due to lunch and some errands I had to run, but I’m sure I would have enjoyed watching the CNBC and other news outlets explaining why “of course” the rally didn’t continue. They are so wise…
The Trades
I took two trades on Celgene Corp (Nasdaq: CELG), one loser and one winner. I knew the first one was risky, but 45 was a nice round number, and looked like it could form important support, based on the daily charts (that analysis courtesy of highchartpatterns.com–though the stock was acting too freaky to trigger an actual buy recommendation from them, the 45 number was still good information). So, when it pushed through a second time, I got in long. You can see from the chart below, I got in at about the top of the move. D’oh! But, I know to be careful with stocks like this, and got out as quickly as possible, and took my 6 cents of market order slippage with a zen-like calm.
The second trade on CELG was at the end of the day (it’s also on the chart above). It was a simple break of the upward trendline that I shorted. Being close to the end of the day after a steady rise, I thought there were good chances of a profit-taking selloff. But, I was disappointed. I still made enough profit to end up net positive on the CELG plays, which was nice. If it weren’t so late in the day, I would have reversed and gone long again when the trend turned back up.
My third trade was Adobe Systems (Nasdaq: ADBE). A simple play to ride the momentum that usually accompanies a new high of day. As explained on the commentary in the chart below, I wasn’t expecting too much of a move, since the volume leading to this HOD was much less than the volume feeding the previous one. Even then, it moved less than I expected. But, I got out just one cent below the overall high of day for the stock, so I’m pleased.
Looking forward to tomorrow!
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| CELG |  |  |  |
| ADBE | | | |
