You all know by now that I don’t make many trades per week. I wait for the best of the best of the setups I can find. That’s why it’s important that when a stock is setting up like I want that I don’t miss the opportunity. Today, I missed a great scalp on NVIDIA Corporation (Nasdaq: NVDA). Take a look:
See the setup just under 30? It looks just like the picture I post every day on the daily high/lows postings. Chart patterns tend to have that quality, that they work on all time scales to one degree or another. Of course, the smaller the time frame, the lower the expected payoff, and the more noise there is to deal with.
So, for a setup that’s only on the 10 minute chart, I would have just rode whatever enthusiasm there was in the break, and let go. (Let’s face it, that’s all I do for just about anything lately). I wasn’t too excited because I didn’t like the daily chart much for NVDA at this point. But, pressing up against resistance at 29.99 like it was, I was definitely interested.
Then I got an email. And I read it. And I replied to it. And when I turned back around, the darn thing had run 50 cents or more. I waited a few more minutes to capture the chart so you can see why I prefer to take profits early on a pop like this one. It came all the way back down to 30.01 in the next 10 minutes. If I were a top-picking go-against-the-trend kinda guy, I’d have shorted it near the top. I used to try to do just that. But, sometimes you get burned extra bad on those plays.
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| NVDA |  |  |  |
