Post feedDo 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 @$$ and taking names. Last note, even though the pattern measures around 3-4 points wide, remember that this is only a minimum.
Like many of you, I also saw an ascending triangle forming. With resistance at $46.5, an entry signal would be taken with a closing price above this resistance. Since I had already been with this stock for some time, I used this movement today to add to my position. Yes, the volume was subpar on this movement, which means there is a slightly higher probability that $46.5 might not act as a very strong support going forward. However, retail is typically strong this time of the year, the trend here is amazing, and the market is still kicking @$$ 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
Posted by
Anonymous |
10/26/2006 01:45:00 PM
See all the comments and took OTM option today! Earning should not be bad as it was pre-announced.
Happy Trading!
H
Posted by
Anonymous |
10/26/2006 02:22:00 PM
Jeff - what trade did you take? The majority that was mentioned...Dec $50?
Posted by
Anonymous |
10/26/2006 02:58:00 PM
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
Posted by
Anonymous |
10/26/2006 03:06:00 PM
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.
Posted by
Option Addict |
10/26/2006 06:53:00 PM