Here’s Why It Pays To Be Prepared
The intent of the
Nightly Daytraders
Report is to help traders establish
a list of High and Low RS issues from which to work. Sometimes the market is kind enough to cooperate, as it
follows through with the pattern established during the prior day of trade.
When our team of market analysts goes to work
each day in TM’s War Room, we try to be as diligent as possible about keeping
you posted intraday as to the trades that have developed nicely out of the
closing setup. Unfortunately, sometimes we end up “missing the post.”
But, that shouldn’t mean that the well-prepared daytrader isn’t already in
there, taking advantage of today’s confirmation trade.
Today I received an email asking about a Slim Jim
reversal play that I had listed under Low RS stocks in last
nights report. The subscriber (btw, thanks Omar ) wanted to know about the
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) setup.
I wish they all worked out this nicely.
With the closing price slightly below supports, it was one to watch after it had
failed to trade above the 50-Day EMA. As those of you who participate with us in our chat
room probably well know, I like to have defined risk parameters when looking at
setups. In Boeing’s case, today’s trade fit the bill perfectly.
By the second price bar in today’s trade,
broken support from yesterday’s pattern was confirmed, but just as important
for me, was that price was still within my risk parameters of no more than .35,
for initial position risk. Potential short entries on price continuation could
have used the prior support levels as their initial stop loss.
If you didn’t see this as an entry, or prefer to
sit out the first 15 minutes, which many traders are known to do, our friend BA
was more than willing to let us find a seat on board this flight south after
establishing yet another Slim Jim at the 27 level.