How Patience Pays Off…Look At This Trade
Like most things in life, some of the sweeter rewards come to those who wait
patiently. As traders, this is a tough scenario to come to grips with when it
seems like each day you are waiting simply to cherry pick the market. Cherry
picking is what will see you through, however, as the trading range grinds on. Yep, pretty much the same old topic that I have been discussing for the past few
weeks now.
But enough of that. Let’s review a few trades that I did yesterday which will
hopefully give you an indication as to just how gingerly I am playing the
current market.
The short sale here in JP Morgan
(
JPM |
Quote |
Chart |
News |
PowerRating)
demonstrates how the patient trader will eventually catch the worm. In this
case, we had a trend change as indicated by the downward pointing arrow. I know
that I did not see that move coming and was OK with missing out. After almost 5
points of downside movement, though, my opportunity was drawing near.Â
- A rally back up towards the 20-period EMA
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- A cross back down on the stochastics
That was the trigger. So what did JPM
look like?
The chart is almost identical, maybe not as dramatic as the price action in
the S&Ps, but correlated nonetheless. Again, we have the same bullet points to
evaluate as indicated above:
- A rally back up towards the 20-period EMA
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- A cross back down on the stochastics
That was one of two HVT trades I did in the opening hour. The other was in
(
AIG |
Quote |
Chart |
News |
PowerRating). However, despite such a slow morning, I did walk away with respectable
returns for my efforts.Â
With regard to the Hasbro
(
HAS |
Quote |
Chart |
News |
PowerRating) trade I
mentioned in yesterday’s column, I did not see any news, other than earnings, to account for the roller coaster ride. As of last night, HAS closed outside
the upper regression channel, a complete flip-flop from last Thursday’s close. Now what? Luckily the futures are indicating a lower opening, however, if
HAS exceeds yesterday’s high, $15.65, I will
cut the position.
| Support/Resistance Numbers for S&P and Nasdaq Futures |
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As always, feel free to send me
your comments and questions.
P.S. I have a new trading module and a new audio service coming out.
Click here for information about the module. Information about the new
service will be available shortly.
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