Great New Pattern

I'd say about 90% of my trades are done within the first 20 minutes for about 80% of my profit.


There is a chat on my message board. Feel free to use it. It's been my experience it's kinda slow to post things but you guys are invited to have fun.


http://communities.msn.com/Rtharpsland/chat

I have my setup's already by market open. I'll run a few and post them on this message after here:




short:
LH is definitely one. This is a volatile sucker and expensive. If I'm right on the short side I'll make a killing tomorrow.

BBI, FRX, GZMO, PETM, TRR

LH is my favorite BBI and TRR a close 2nd.



Long:

not many for me came up today again. SSSW If I don't have signals I don't force trades.
The key is confirmation. I must have it. That means opening price is above yesterday's close for a long and opening price must be below for a short. Think of what I'm doing as bringing balance to things heavily in extremes.

The cash markets I see on the corner window of CNBC dictate my trading direction. All red I'm shorting mainly, all green - I'm long. Don't fight the trend.

KG worked like a charm on the short side today. In fact I've found the opposite of Pre's type of pattern to be of higher probablity and have better R multiples.

My stops are pretty tight. I usually just use yesterday's closing price, or a point whatever is smaller. The reason the downside works so much better is the use of bullets (thanks Echotrade), huge short list and ability to short as much as I want (thanks Paxclearing)and the fact markets go up slowly but down quickly. If I'm wrong with a tight stop no worries , it usually very easy to get out. When I'm right the stocks drop like a rock. It's a lot of fun being short and seeing the market had no bidders anywhere in site. (just remember how overbought the stock is on a daily/weekly chart)

I usually have a ratio of a stop of .10 and am sometimes making 2 to 3 points. If you guys have read Trade Your Way to Financial Freedom I'm talking about 30R's. Risk 1/2% and make 15% on your return. Not too bad. :)

Robert Tharp

 
I'm currently short on LH as well. Big runup the past several days, as well as the fact that it peaked out today at a previous resistance level. I'm looking for a multi point retracement.
 
Im not so sure of lh just b/c it worked off a multimillion share secondary really fast. It might drop a few, but I think if the market had been stronger, it would have trucked another 5 today. Man, I still remember buying 2k at 100.15 2 months ago and booting them for a 3 pt profit and being psyched. Ohh well. I really don't have anything I like much. Bur has a decent pennant, but not much upside really. I might just sit tomorrow out. I think we start to really gain momentum to the downside so we should have some nice plays soon. I took 10.5k today. It feels good to have a 5 digit day again. Im still long a few k of usg, if it's strong early on, I'll buy more. Otherwise, Im just playing the news. Do appb or fwrd or kpn do anything for anyone? I might also play nvr.
 
Yes, I like aapb, and nvr. Just tells me that I need to learn how to scan. I thought I spent enough time last night. Oh, well. Time will fix it.

P.S. I got TLAB at the open.

 
Appb moved too fast, NVR I bidded for and wasn't hit on. IM long Fwrd, but just 1500, not that confident. ELY too, but not sure where the bottom is.
 
ELY support 18.75

This would be good tomorrow. Look to play this as I played TLAB today.

Next supports 17.97 and 17.19

I would only try to go long off, or above 18.75, or 17.19
 
update on LH. There was 48 million sitting as support -30,000 shares at 159.5 so I've covered with a small profit for my short (only $80 today :( yech but better than a loss--

Should probably go up today maybe tomorrow than a shorting opportunity. Nothing new to report

rtharp
 
Curious, what software and formulas is everyone using to find candidates for GNP plays? Thanks

I'm scanning on Stockscharts.com and keeping a list. There must be a better way. :)
 
I just keep scanning. IM sure i miss most. IM out of all but 1400 fwrd, I took 4500 in the end, and made .7 on em. Still have 4500 ely. This one sux. I have no other positions. WDC is probably ok for a quarter. Im not really interested. The upside just isn't large enough.
 
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