No trades from Zoomie today. Apparently we are playing tag this week, and Zoomie will be making the trades tomorrow.
Today’s market environment was difficult, from my standpoint. I saw stocks like Medarex Inc. (Nasdaq: MEDX) and Apollo Group Inc. (Nasdaq: APOL) break out and then stall. Eventually some would fail, and some would succeed. For the second day in a row, of my approximately 169 watchlist stocks, Trade-Ideas told me only two had very high volume. Those were Express Scripts Inc (Nasdaq: ESRX) and D.R. Horton Inc (NYSE: DHI).
So, I mostly just sat and watched, until I decided nothing was happening and took a walk. This was about 2PM EST. It’s 74 degrees here, so my walk was very pleasant. When I got back at 3PM, the indices had all surged up, and more of my stocks were breaking out from tall candles. That type of trade is not for me, late in the day, but I was wishing I had waited just another half hour to leave my desk. I could have made some good money on the surge in stocks like Continental Airlines (NYSE: CAL) or BE Aerospace Inc (Nasdaq: BEAV).
But before all that, 20 minutes into the session, Ceradyne Inc (Nasdaq: CRDN) broke out of its target level of 53. The move was too fast for me to catch (in the time it took me to swivel my head and pull up the chart, it had moved 30 cents). But I watched it, and after it took a breather at the 53.25 area, I checked the TICK’s and bought in for a scalp. Less than a minute later, I sold at 53.49, for 0.92 R. A nice way to start my day, and unbeknownst to me at that point, finish it as well.
Shortly after that, it reversed and fell pretty hard. This made me hesitant to jump on stocks that broke out and stalled once we were past energy of the market open.
The chart (I accidently entered my closing trade time incorrectly, so imagine that exit line over on the same bar as the entry line…)
(I should point out that I was watching CRDN because it was featured in the excellent HighChartPatterns.com service’s newsletter.)
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| MEDX |  |  |  |
| APOL | | | |
| ESRX | | | |
| DHI | | | |
| CAL | | | |
| BEAV | | | |
| CRDN | | | |
