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A 70k bet that I can't make a 50% gain in 2009
- Thread starter geez
- Start date
Quote from geez:
5/26/09
11:41 2000 FAS BUY 9.33
STOP 9.23
TGT 9.5312:50 2000 FAS EXIT 9.53
P/L +384.93
Hi Geez,
I attached a chart of the FAZ trade that you took @ 11:41.
I have a few questions regarding your entry. Can you please see the attachment for my questions?
Thank you,
gotta_trade
Attachments
Quote from gotta_trade:
I attached a chart of the FAZ trade that you took @ 11:41.
I have a few questions regarding your entry. Can you please see the attachment for my questions?
Thank you,
gotta_trade
Low at 11.15 was lower than low of 10:30 & 10:50 ; so does not make perfect setup for LONG.
Low at 11:45 was higher than last low i.e. 11.15 ; possibly a better setup for GEEZ's LONG.
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2441276" width="600" height="480" />
Quote from gotta_trade:
Hi Geez,
I attached a chart of the FAZ trade that you took @ 11:41.
I have a few questions regarding your entry. Can you please see the attachment for my questions?
Thank you,
gotta_trade
I'm going to take a shot at this even though I'm likely to be wrong, so keep that in mind.
first, if i'm reading your notes right, the green bar your pointing out(11:10) made a lower low than the previous bar.
Notice the bar Geez used to trigger his entry never broke the low of the previous bar of 11:35. Then he used the bar your refering to as his stop point.
Another thing about that 11:10 bar is where would you stop? Looks to me like 11.06 would have been the spot, so about a .20 stop.
I believe the 11:40 bar breaking the hi of the 11:35 bar was the trigger to enter.(?) But, this makes me wonder what if the price reversed before 11;45? In other words, Geez went long before that bar was completed, so what if the lo from the 11:35 would have been taken out? Does that any sense, lol!?
Hopefully Geez will chime in and help us.
Quote from gotta_trade:
Hi Geez,
I attached a chart of the FAZ trade that you took @ 11:41.
I have a few questions regarding your entry. Can you please see the attachment for my questions?
Thank you,
gotta_trade
Thank You gotta_trade,
I just got on to my computer at the office and wanted to post the FAS chart from today. I felt there would be questions regarding this trade and it's also one of my favorite setups.
I'm going to use your chart to answer the questions and tell you what I saw:
First off, the daily chart of most stocks gave me a long bias this morning and the way the indexes moved up early on, I was looking for some pullbacks to get long.
Second, Mike Morrison is right on why I did not buy the first pullback you asked about at 11:15. It broke the prior pivot low that was made at 10:30, so this voided any long for me.
The rally from this tops out and puts a lower high in at 11:30. Alot of traders would short this lower high, but because this is the first day of a strong rally after a few days of pulling back and the market is in a short term uptrend, i want to be long on a day like this. So I wait for ANY higher low that comes off of this.The reason I like this so much is you also catch the traders who are short, causing a short squeeze when we move back up.
The 11:40 bar breaks above the 11:35 bar, that is my signal to buy, putting the stop below the pivot that was just made at 11:35.
The smallest stop I take is a .10 stop, so my stop was 9.23 and my target 9.53.
Just to clarify it again...the #1 reason for this trade is the daily chart of the indexes. A few days of pulling back in a short term uptrend, followed by a very strong opening move today on the first day of a rally. So I want to be aggressive to the long side.
hope that helps.-G
Here is the chart:
Attachments
Quote from TraderSU:
Low at 11.15 was lower than low of 10:30 & 10:50 ; so does not make perfect setup for LONG.
Low at 11:45 was higher than last low i.e. 11.15 ; possibly a better setup for GEEZ's LONG.
<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2441276" width="600" height="480" />
oops..TraderSU nailed it already, 100%