2 Stocks I Am Looking At On Monday Morning
I would like to first introduce
myself to the members of TradingMarkets. My name is Mike Kestler and
I am a professional day trader. You would definitely categorize me as a hyper
day trader. The posts that I will be contributing to TradingMarkets will consist
of my daily adventures as a “Hyper Trader†as well as what I will be looking for
in the trading days to come.
Friday’s high-flying stocks that came up on my radar were
(
WEN |
Quote |
Chart |
News |
PowerRating),
(
LEA |
Quote |
Chart |
News |
PowerRating), and
(
MO |
Quote |
Chart |
News |
PowerRating).
During pre-market I had discovered from reading the news that Wendy’s
International Inc., WEN had announced plans to spin off Tim Horton’s chain
from its sluggish burger restaurants. This catapulted WEN to new 52-week highs
in pre-market trading. After the New York open, WEN appeared on my scanner and I
realized it had opened higher by 5 points at 50.29. I quickly identified the
large gap on my daily chart from the previous day’s close of 45.27. I looked for
an opportunity to short WEN and for a downside break through the 50. With a
number of large offers in the NYSE open book confirming a possible break, I took
a trade to the downside and went short. WEN immediately crossed down and I
covered for a small gain. By reading the tape I was able to identify the
strength in WEN As it appeared on my scanner as a buy signal, I decided to go
long through the day high of 50.45 and took some profit all the way up to 51. It
was about 45 minutes later when I was able to take a profitable trade in WEN once
again. WEN appeared on my scanner and I went long through the day high of
51.20 and then added to the position at 51.50.
Lear Corp, LEA is another stock that came to my attention. LEA had opened up at
41.75. A target price of 42 was extremely significant to me because it was
clearly a level of resistance. LEA had a previous day high of 42 and just below
42 on July 14th and July 19th. I wanted to go long LEA through 42 if the
opportunity presented itself. Once LEA showed up on my alerts and the
opportunity to go long presented itself I was able to capture some significant
upside movement in this stock. Once LEA broke this level of resistance I kept
adding to my position every .20 until I got stopped out around 44.40.
In the early morning
(
MO |
Quote |
Chart |
News |
PowerRating) appeared on my alerts as being crossed up in the market.
By identifying where the NYSE bids were in relation to the ECNs, I was able to
capture a quick profit of $.25 (twenty-five cents). Later in the afternoon MO
appeared on my alerts at the day low and with enough confirmation I took the
opportunity to get short for another nice tidy profit.
Monday
Since Wendy’s held strong and closed near the day high of 52 I will be looking
for opportunities to go long this stock through the day highs. If the market is
weak and WEN sells off towards 50 look for an opportunity to go short through
the 50 and fill in some of the gap from Friday’s trading. Remember, we are
towards the latter part of earning season, but there is still enough opportunity
to trade off of a company’s earnings as well as news-driven stocks. Monday
morning I will be looking for two primary stocks to move based on their
earnings. These stocks are
(
GGP |
Quote |
Chart |
News |
PowerRating) and
(
NTE |
Quote |
Chart |
News |
PowerRating).
(
GGP |
Quote |
Chart |
News |
PowerRating) is near its 52-week high and if the
stock has positive news I will be looking for confirmation to go long and stay
with the trend.
And that’s the Big Picture.
Michael Kestler
Michael Kestler is a full-time
professional trader and managing partner for Evolution Capital LLC., a
proprietary trading firm. Mr. Kestler specializes in intraday trading of NYSE
listed stocks.
Before founding Evolution Capital LLC., Michael began his career on the floor of
the CBOE. Mr. Kestler was previously a Mid-Cap and Nasdaq Market Maker.