One Day Never Makes a Trend

A beautiful recovery to finish off the week. Afterall, it is a bull market.

I conversed with a few traders yesterday about what was going on in the market. I tried to put an emphasis on patience and confidence in their analysis. Emotional exits are the hardest part on the account. I am sure plenty of traders are watching trades they exited yesterday up huge today. Then when you start to second guess your decisions, all hell starts to break loose.

It was an interesting week this week. Many of you have noticed that I took a step back this week, but only for personal reasons. It won't last forever, but will get better as I get my act together.

I still have a lot of posts I have started on, but never finished. Maybe today will be a better day?

Recommendation: Cross your fingers

Long: Everything.

Short: CME huh? You play with fire and occasionally you get burned, right? Everyone knew this was part of the gamble.

I said this yesterday but today it is really paying off. I learned to position size better with wider stops (ATR) and rode out most of yesterday with some PUTS in the mix down but OK. Today almost back (would be if I had not executed a trade in error). Patience really was the key this time and following my rules. Was bummed that I got stopped out of VIP in the last 10 minutes yesterday but will probably jump back in today. Jeff, please take care of those personal issues as you can see by the huge volume on your blog the community is growing and appears healthy other than maybe Chris with those hammers and car events.

Anyone have thoughts on AKAM? I see resistance around 46. My patience is being tested.Meanwhile CEG keeps chugging along. Speaking of long I'm also long ESRX.

Hey Jeff .. thanks for the update and I think you can see with a SMILE on your face ... the 'store continues' while you breakaway. You have obviously created a room of therapy here! Jump on in when you can! :)))))) Our thoughts are with you till you do.

Oh .. what to pick today ... VIP ... I'm with you B&P ... PCU / PCP ... just a few of so many .... How about ACI if volume continues to end of day?

This is such a neat place! Thanks to all of you for making it that way!

Back to research!

Sarah, I was actually looking at the chart for AKAM when I read your post. In hindsight, I guess the day after earnings when the drop through resistance was confirmed would have been a great entry. Now I would want it to drop below $43 or maybe bounce to the 30 DMA and then pullback. But I'm really new at this - hopefully you'll get some other input.


Chris and Catherine:
Thanks for the response. One thing I learned is when I am not sure is to watch the size of the trades going through. I have been watching that and I saw one block being sold (25,000) and another for 10,000 shares. That gives me warm fuzzy feeling that there might be more downside to it, so I will wait till the end of the day. I see the market maker accumulating shares also.

Sarah: I am in the AKAM trade too, It has not broken through resistance and volume keeps on diminishing, so I would wait to see what happens. I have May also on that one so I have to wait.

Is market breadth crazy positive or what? I found 2 down stocks in my watchlists - KNOT and PLCE. Hmmmm...may be time to buy some puts!

Half of today’s volume in CEG was during a one minute period at 12:38 EST and the stock price didn’t do much. I guess that would be the institutional swapping of shares talked about on the Marketcast the other night.

Would that negate the $93.50 break with volume? With two hours of trading left, I guess we can only wait until the end of the day since it has retraced a little bit in the past hour or so. See if it holds.

How do you guys like the entry point on bullish ATW?

I'm going to jump...

After your opinions of course!



ATW got hit pretty hard on earnings with volume. Since it has just about come back to a trendline drawn from January through mid March, I would wait for it to consolidate a few days and confirm a move higher before jumping in. Today’s high volume spinning top confirms indecision. That is just me.

TEVA is looking good

COP also

CHK and QCOM are offering good entries today on support bounces.

Jeff, thanks for starting a new thread. I'm having a hard time keeping up with the posts or maybe my job is having a hard time with me keeping up with the posts. :)

Joel R.

Mr Logan says it pretty well, but you have to go by your own rules. I have been tending to jump in earlier and bailing immediately if the bounce doesn't happen. That way you get the full bounce, rather than jumping in after the initial bounce. But this is why Catherine refuses to throw away the bag of hammers. Sometimes, when I'm travelling I'll miss a couple of down days after jumping in early and we'll lose big time, as the stock just continues on it's merry way down south. You have to decide what style works best for you. And how much abuse you can take from your spouse.

ISRG is bouncing back a bit today from it's lows... guess I'll give it another day to live. BBY is piss... er bothering me immensley and I think I might just bail on it. One hour to go here.

David S. Good on ya, mate. The only thing anyone can ever fault you on is not sticking to your own rules. I have been known to bail early in a panick, and usually regret it. I have the bruises to prove it. Good luck.

Hope some of you jumped on BRL .... was on Jeff's list ... popped 3 days ago from inverted H&S ... May be out of range now but still strong volume again today ... Just FYI!

they talked about CEG on the cast? what was said.Good I hope. I entered around 89, and plan to ride this for awhile ....hopefully.


I don't know whether or not they mentioned CEG on the Cast. I was referring to the one minute spike in volume (at 12:38 EST) that accounted for one half of the volume of the stock about an hour or two ago. In this scenario, the stock price was virtually unchanged.

Ipunched BRS by mistake and take a look at that victim

a little extended but earnings

DavidS ... my new friend .. Saw your TEVA post .... did my research and all of my entry rules approved it ... .. took a position in the last hour ..... and BAM - 24% in the last hour .... Guess I owe you one of those White Mocha things Brett talks about!

Good weekend to everyone! Thanks for your participation this week! Amazing what I am learning from your wins and losses ... I hope I can help with the same along the way ....

Have a great weekend addicts. And take a look at GSF today.

Post a Comment

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.
My profile

Prescriptions Here!

Other stuff

Blogarama - 
The Blog Directory
Directory of 
Finance/Business Blogs Finance 
blogs Top Blogs Finance Blogs - BlogCatalog Blog Directory