Going in with momentum

[Ares]

NUVO looks like it is set up to move.
The hourly chart looks like its rounding.
I would have been taking a position now with 1000 shares at 4.48 because I just saw a 50,000 block printed in gold.
The hourly chart also shows a break of the previous hour's high of 4.43
The 15 minute chart shows a break of the upper bollinger band with bigger than normal volume.
NUVOalso has a nice level 2 set up and green prints filled the time and sales, positive net and positive open price.
Target on the hourly chart is 5.31

With this strategy, I'm looking for moving averages that have expanded to the downside on the daily chart in this order:

200 ma
50 ma
8 ma

A recent cross of the 8ma above the 50 ma backed up by volume.
A daily pullback
RSI(2) near or below 30
Active in premarket.
A rounding bottom in the hourly chart.
A break of the previous hour's high and going above the 8 ma.
A 15 minute bollinger band break out.
A nice level 2 set up
A block trade on the upside.
green prints filling the time and sales.

Exiting out using the open and close below the 8ma of the 15 minute chart doesn't seem to work for me.
I'm just curious where this would be stopped out using this strategy.

Let's see what happens with this exit strategy:

Iniate exit when 10 cent protective stop is hit and trail the 1 minute chart's swing highs with a 10 cent stop.

1st stop 4.48 - 10 = 4.38
2nd stop 4.55 - 10 = 4.45
3rd stop 4.65 - 10 = 4.55
4th stop 4.77 - 10 = 4.67

4th stop got hit.
Iniate sell 1 cent below swing high and offer out at ask.
Out at 4.76 with this exit for a profit of $280.

Another exit strategy that I would like to test is:

Initiate 10 cent protective stop and trail the 5 minute chart's swing highs with a 10 cent stop.
1st stop 4.48 - 10 = 4.38
2nd stop 4.77 - 10 = 4.67
2nd stop got hit.
Initiate exit by offering out at 4.76.
13:10ET
still will be wating for fill.
13:12ET
watching 5 minute 4.63 low not to be breached
13.17 ET
4.63 breached, out at 4.64 for a $160 profit.

I like the first exit strategy for this stock using the 1 minute chart for exit combined with a 10 cent risk/trailing stop.



Suggestions for exit are welcome right now.

[Ares]

DYAX just made an hourly higher high.
watching if the previous 15 minute high of 6.13 is broken by a block trade.
May be better to wait for this to tank towards the hourly 200 ma.

[Ares]

I like the Daily chart of NUVO for a swing trade.
Stochastics recently crossed up from below 20.
confirmed by a MACD cross over.
RSI(2) near 30
Uptrending MACD near the zero line.
Volume decreasing as price goes down.
It was active in the premarket
had block trades come in
broke the previous day's high hammer candle (which looks like it's going to be a higher volume than yesterday's)
It's trading at least 25 cents from the open with a positive net price.
It has a rounding bottom on the hourly chart and the 15 minute chart showed a break of the upper bollinger band with bigger than normal 15 minute volume.

If the entry for a swing trade is at or near 4.65 by buying strength.
Logically, buying at 4.65 for a day trade would be OK too. Isn't it?

This stock had been on a downtrend, went through a trading range, and broke out of it with bigger than normal volume.

However, the linear regression is not close to the bottom line yet.

[Ares]

Please correct me if my charting is incorrect or give any comments
This is how I see SUF.
I like the chart and will be keeping it in my watch list.
We'll see where wave 3 will reverse.
It would be nice to get in on wave 4 for the 5th wave.
I'm happy for you Scottish Trader.

[ScottishTrader]

Ares,

I like your analysis of the situation, and agree, now is not the time to be buying SUF - there is major resistance at 4.95-5.00 both from the chart and the 200MA and it may struggle a bit to get through there.  As far as using the RSI (2) to inform trading decisions, I like it (it reminds me of the CCI, an indicator I like to use), but just remember that these indicators must only be used as supporting evidence to what you see on the chart.  They can inform trading decisions, but basing decisions off them (especially one with such a short period) can lead to too many whipsaws and inopportune entry points.  But I'm sure you already know that.

As for SUF price action, they released a correction to their form 10 yesterday AH which seemed to bring the stock down 12% in the aftermarket, however, only 600 shares were traded after hours, so this can hardly be seen as a watershed.  I sold almost half my SUF yesterday to lock in a 30% gain, it seemed a reasonable thing to do considering the recent run and the looming resistance levels.

If we do get a retrace, I would like to see the recent breakout level of 4.18 hold, so will probably set my stop on the remainder down near there.  I may even try and pick up more shares at that level.  It is often worth aiming to pick up more shares when a stock tests support for a low risk entry, provided you have a close stop if that support level fails.

The problem with SUF is that the company itself has no revenues, no earnings and has been losing money ever since inception - all they have is a promising and potentially revolutionary technology.  Sounds like a biotech really, not an oil technology  company.  The market is and has been pretty skeptical on them over the last year, and a lot of people ar betting on the technology failing, and that they will never see revenues.  This is entirely possible, but they have been building a major facility, which is scheduled to be complete in the next month or two, so d-day on the tech is looming.  If positive results come out of this facility, thn we should see a major short squeeze.  But my recent experience with DNDN has taught me to treat every trade as a trade, nothing more nothing less.  Don't get sucked into "believing" in a technology or a possible outcome, and letting that influence your decisions, which for me at least, need to be based on what the chart is saying.

[Ares]

Linear regression combined with the RSI(2) gave a sell signal few day's ago on DNDN.
I agree with you ST.
Indicators are just that - indicators.
PRICE is KING and Volume is not supposed to lie.
I would be placing DNDN in my watchlist too because it's very close to my ideal criteria.
It would be nice to see the MACD cross down and up again with an uptrending line to confirm strength of trend.
It would also be nice to see stochastics go down below 20 and cross back up confirmed by an uptrending MACD cross.
DNDN may go through a bullish consolidation between 25.25 and 13.10.
What are the chances of DNDN filling the gap between 13.10 and 5.35?

[wrangler]

Hi ares
Really like the chart with explanation on the right side. Only if you could change the style of the lettering maybe to ariel it would be easier to read.
Will be watching for more charts like this one.
Lets have a good week trading.
Hope you make some green

[wrangler]

Very good,,easy to read

[wrangler]

Very good,,easy to read

I think you was refering to chart on TQNT

[Ares]

Hi Wrangler,

I'm glad you like the new font.
I was determined to learn how to change the font with a motivation from your request.
I will be posting more of those.
If you (or anyone) see the chart differently than the way I see it, I would be glad and am open to your perspective.
Let's continue to learn from each other.
Keep in touch.

Ares

[Ares]

Hi ST,

I'm trying out your suggestion today and modified the 25 cents above the open to 2.5% change above the open.
My wife and I think that makes more sense.

Stocks I'm watching right now are:

Longer term (these are the stocks left on my paper trade account - I ended up holding them for different reasons. Some because the lower linear regression/RSI(2) were low and some because the longer term trend is still intact, some because I realized I made mistake on entry but was to proud to exit.)

HOKU
LJPC
PKTR
SOFO
TSCM

Active today that has a potential for an upward momentum trades are:

DYAX = I have my alert set at 6.37(previous hour's high if going in with momentum) and 4.61 (Alert set 10 cents above the hourly 200ma for a momentum low entry just in case the stock tanks).
3.82 = Weekly 200 ma
3.53 = Daily 200 ma


DROOY,PGLA,QTWW,NUVO,SPPI

[Ares]

QTWW seems to be looking good so far.
In at 1.39 with the 25,000 block trade printed on the green.
Went in using the previous 15 minute high since multiple timeframes are uptrending.
Previous hour's high = 1.45
Previous hour's low  = 1.27
hourly 200 ma          =  1.22

I will try the 10 cent protective stop with a trailing 10 cent stop from the 1 minute chart's swing high.

protective stop = 1.29

trailing stops:
9:43ET
1st = 1.43 - 0.10 = 1.33

9:52ET
A gap up with volume already higher than yesterday's
positive net
trading at least 2.5% above the open.
Block trades came in printed on the green
currently above the  8ma of  the weekly,daily,hourly, and 15 minute charts.
This is mainly based on charts.
Fundamentally, I don't know anything about it so far.

[mbaugh]

I had to comment on your post since I see that you are trying to do what many others have been trying to do for so long but only end up seeing very small gains in the long-term term.  Believe me, I have been trading for several years and David is right that you will end up with smaller gains compared to holding the good fundamental companies for the long term.  For example on one of your old trades what would be your gains if you had held onto BRCD compared to what you made trading it short term?  The reason I choose that one is because it was the only good company you traded compared to fundamentals.  Here's something to try just for an experiment, on paper buy David's top three holdings that are in the 3stockson fire portofolio and keep them for a month and see what your gains would have been.  I realize you may not have alot of funds, but whatever you can buy will add up!  Compare these gains to what you have been trading lately and see how you come out.  My suggestion is to buy CIMT and NVTL and hold for a month.  This type of trading is far less stressful and is FAR more productive.  It allows to to spend more time with your family and work-life.  I'm only telling you this because David has changed my life ten-fold for the better and I have tried doing what you are doing only to see minimal gains.  If have to keep it simple and buy the good sound fundamental companies!  Good Luck!

[Ares]

Hi mbaugh,

Thanks for you message.

I will do that.
I'm looking at CIMT with an entry of 4.47 if that high is broken or wait at the daily congestion support at 4.20
What do you suggest?
I was wondering when you would send me a message (because I kept on seeing you in the threads I'm in)- you finally did!
I applaud you for helping me out.
We are planning to go on the 14 day trial before the promotion period is over.
We're just prolonging it a little longer and see if we could get more funds in so that if we see a very good opportunity, at least we'll have the funds to jump in too.

[Ares]

I just checked the other indicators and may hold off on CIMT.
Hopefully I could get a better entry (even it's just on paper for now - I'm treating these trades as if they were real).