Today was a choppy, boring day where I could find few opportunities, despite being fully awake for once. :-) I would have dwelled on it, but the Trading Goddess said to get over it, so I did.
If you track my twitter feed, you already know that I took one trade today, on CVS Corporation (NYSE: CVS). Let’s take a look at it:
What did I see?
- A failing gap up that was finding support above the OR low.
- It was starting to make higher highs and higher lows, and the 5MA had caught up with it.
- Lots and lots of volume (it finished with 302% of its normal volume).
What did I want to see?
- A re-test of the OR high
Unfortunately, I got in a little late. I’d have ideally gotten in at 32.68, but at my actual entry the risk was still well under 1% of the stock price (which is my rule of thumb for how much is too much). And, even more unfortunately, the price did not rise as fast as I had envisioned. When the action started to get a bit dicey about halfway to my target, I bailed. Flat, choppy, friday markets are not the time for blind faith in some trade’s follow-through.
As you can see on the chart, I didn’t get out quite at the top of the move (it topped out about 5 cents higher), but I was correct in assuming we were going to be stuck in that range for a while. Turns out, the stock never ran. So, I am very happy with this trade, overall.
I tossed out a couple other ideas via twitter, but didn’t take any of them, myself. If you were more brave than I was, and quick to take profits, you could have made some nice money on CDWC, for instance. I just didn’t think this was a good day for speculation against the trend, even for a scalp.
I hope your day was profitable! Be careful out there…
| Stocks Mentioned In This Article | |
|---|---|
| Stock | Links |
| CVS |  |  |  |
