Only two stocks made it through my volume screen today, and one of them was disqualified for gapping through my trigger price. The gapper was PHI, which left Companhia Vale do Rio Doce (NYSE: RIO). It opened just below the trigger price, meaning you had to be willing to trade it in the opening 5 minutes. Unfortunately for me, I was not! By the end of the day, it had done nearly 3x its normal volume. With a 15 cent stop, I think I’d have maybe taken 2R at the 10AM dip. But, had I been braver, this trade would have been worth 9.4R or so toward the end of the day. Wow! [EDIT: I see Eyal caught RIO today. Good Job!]
| Symbol | Avg Vol | Volume | |
|---|---|---|---|
| RIO | 6,339,000 | 18,864,900 | |
| P/L | Maybe scared out for 2R, or maybe 9.4R for 0.5% stop 4.5R for 1% stop 2.2R at EOD for 2% stop |
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| Charts |   |
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Like I said, that was the only thing on my screens today. I saw later that Hilton Hotels Corporation (NYSE: HLT) also triggered, with 1.43 times normal volume by the end of day. I frankly didn’t like the looks of the daily chart, so I may not have traded it even if I was looking at it. Still, it never dropped more than 8 cents below the trigger price, so it acted quite well. Unfortunately, it had trouble breaking through round number 36. That’s always an issue with the trigger is under a round number…
| Symbol | Avg Vol | Volume | |
|---|---|---|---|
| HLT | 2,940,000 | 4,211,000 | |
| P/L | 1R at EOD with 0.5% stop 0.5R at EOD for 1% stop 0.25R at EOD for 2% stop |
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| Charts |   |
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So, two triggers on above average volume, and 2 wins. Not bad. Not bad at all…
Here are the DIA and QQQQ charts for reference….
| Symbol | Charts |
|---|---|
| DIA |   |
| QQQQ |   |
Great trades did you take the RIO trade?
Since I still don’t trade the open, I missed the early entry. I made another blog post today about the box trade I took on the stock later in the day.
Thanks. I wish I had not taken the second partial.. and like Marty Schwartz says I also wish I’d tripled my R size just for this trade lol ;-)
:-) Triple risk size on the big winners would be nice. I wish I had caught as much of the move as you did.