Do You See What I See... Part II

Thanks again for all the responses to last night's trade. I have drawn a few things on the chart to illustrate a few things I have seen and where I stand on this trade. Take a look...

Like many of you, I also saw an ascending triangle forming. With resistance at $46.5, an entry signal would be taken with a closing price above this resistance. Since I had already been with this stock for some time, I used this movement today to add to my position. Yes, the volume was subpar on this movement, which means there is a slightly higher probability that $46.5 might not act as a very strong support going forward. However, retail is typically strong this time of the year, the trend here is amazing, and the market is still kicking @$$ and taking names. Last note, even though the pattern measures around 3-4 points wide, remember that this is only a minimum.

Think this is a good/bad trade, leave some comments. Share your opinion with the group, inquiring minds want to know! If you want to hear my opinion.....

Jeff, When you say you added to your position, does that mean more
contracts of the same strike and
month? Are you OTM? Steve L

See all the comments and took OTM option today! Earning should not be bad as it was pre-announced.

Happy Trading!

H

Jeff - what trade did you take? The majority that was mentioned...Dec $50?

Jeff,
Read your comment on the chart about divergence common in a consolidation pattern. Can you elaborate on that. My main reason for not takeing the trade today was 1) already have position in the Retail sector and do not want to have too many in the same sector, 2)breakout with not enough volume (too new to this to have a gut feel), 3) divergence on the MACD.

Would like to learn from you more about why divergence is common in consolidation pattern.

As before, good execise. Keep up the good work.

Mahmood

Jeff, Your article started: Thanks again for all the responses to last night's trade.

I'm new to your blog and was wondering where "last night's trade" was discussed. I didn't think that you hosted Master Talk last night, but could be wrong.

I also can't read the stock sumbol on the chart that is posted to follow along.

Great information coming from your dedicated participants. Glad I was given your blog info.

Thank you,

Paul

Paul,

The title of this post was "Do You See What I See Part II." Scroll down to a post dated yesterday and you will see "Do you see what I see" which was the original to the sequel.

Happy Trading.

Jeff...
Thanks for the trade. You mentioned you added to your position today, what trade were you in? Also, what trade would you have made if you would have entered AEOS today? Specifically, what option, strike price and what would be the exit or target?
Since the fundamentals are good, would you have considered also purchasing the stock?

Thank you for providing us with the homework. Working with an actual trade and seeing how you, as well as other traders view it, is extremely helpful. Thank you!!!
Danuta

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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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