A More Developed Trade?
Sometimes it pays to be a
little late by finding that second entry without having to pay the ‘toll’ the
first time around. Personally speaking, I
hate days like today. I was ready to play aggressive from the long side coming
in, but with the market gapping higher to retest prior highs, the decision to
‘pay up’ in the opening minutes was quickly made for me–I would wait until I
saw a high-probability pattern develop on the 5-minute time frame.
Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) was upgraded this
morning, and was at least partly responsible for some of today’s early bovine
mood. The gap higher of course lends itself to possible reversal shorts by way
of classic ‘news reversal plays’ or on the 5-minute chart, using strategies such
as the
Opening Reversal. My own inclination was to still look for some pattern long
setups, especially in strong issues like Yahoo! The reason being that, despite
the fact that I heard a whole lot of people talking down the charts this
weekend, my own research showed a surprising number of healthy looking
bases–and Yahoo! happened to be one of those candidates. So much so, in fact,
that Yahoo! was put in my
Intermediate Report for this week, as a potential swing trigger.
Well, as it turns out I was late to take what I
would consider to be the first pattern entry. Twenty-five minutes into the day,
Yahoo! triggered out of a FlipTop OR, as a continuation long. But, as so often
happens, it’s the second opportunity that makes it all worthwhile.
Several minutes later, and now past the first
half hour of trade, Yahoo! had still not ‘done it’–but, was now offering a
second opportunity for pattern longs. This time, the trade was looking to trigger
above the 30-minute high of day. Many traders look to focus on key reversal
times, as well as patterns in triggering trades within their methodologies–with
Yahoo!, the ‘better late than never entry’, after the first 30-minutes gave
traders both time and pattern, as the consolidation was still well defined
within a fairly tight pattern.
It was a couple of minutes after 10 A.M. that I
saw time and pattern coming together in this High RS Issue, when I ultimately
alerted our subscribers in the member chat to what I was seeing as a
high-probability entry.
‘Oh Yahoo!!!’ It wasn’t living LARGE, and
deserving of a ‘OH YAHOO!!!’–but sometimes ‘as good as it gets’, is still good
enough to provide consistent, positive edge in an otherwise difficult
environment.