Help! - Ccrn

G

Glutton

HELP!

I had this stock on my watch list and I got totally distracted by a bunch of losing choppy trades today.

I know that CCRN is a good setup and I also know that I'll screw it up so I am basically asking for input for tomorrow (Friday)
How would you trade this if...

1 - it gaps up
2 - it pulls back
3 - Would anyone buy premarket?

Looking for input from anyone trading for a living.

Also, How would/should I be monitoring my stocks? High/Low alerts, little charts?

I really appreciate any input. This market is driving me nuts! :confused:


I seem to be missing all the big moves.

Thanks

G.
 
Well, since no one else wants to, I'll stick my head under the guiotine and take a stab at it.

First off, I monitor my positions by setting alerts just shy of my target and just before a stop would hit. For intraday I also keep up a small 5min chart.

I'll bet, if you're missing the moves you want, you're probably trying to watch too much stuff. Try to simplify a bit and once getting the results you desire, step up.

As to CCRN, I can only tell you what I see. And that is, nothing playable for me here yet. This appears as a break out. The market is essentially still sideways at this point in time. Under those conditions, breakouts usually fail. If there is no follow through to the upside tomorrow, I'd be looking to short it later in the day with a target of $10 or so over the next couple of days.

Specifically to your question: if gaps up tomorrow and doesn't move much, I'd look to short the 5 minute low. If it pulls back some, I'd set an alarm a penney over the high of the day and look to short if the new high produces no follow through. I don't trade afterhours. I want liquidity like now, if I need to get out quick.

Just my point of view, hope this helps a bit.
 
Well it looks like it might be on the verge of a breakout. But realize that a lot of potential breakouts end up being false breakouts. One thing I noticed was that volume was not all that much higher than average today. True breakouts tend to occur on very high volume, so that is something you will want to watch for tomorrow.

1 - If it gaps up, especially if it gaps up a lot, be careful. If it gaps up tomorrow it is because the market makers are trying to protect themselves from a high imbalance of buy orders. It's their job to take the other side of customer orders, meaning that they have to sell their own inventory or go short the stock in order sell it to the public. Therefore, there is a good chance they will try to open the stock as high as possible, so that after they short the stock and sell it they will be able to cover later in the day on a pullback. In fact, they will do anything in their power to try to push the stock down after they have established their net short positions in the moring.

2 - If it pulls back from the get go tomorrow morning, you have to ask yourself why. Why would it pull back after such an impressive run today? Was today's run for real? If it turns back up and regains upward momentum, perhaps you would do well to hop on board. But again, be careful. Know where your stop is.

3 - Buy it premarket? I wouldn't personally. The reason is that you just don't know where the market makers are going to open it. There is speculation that the run up today was caused by short covering or was in some way linked to options expiration tomorrow. You really don't know where it's going to open, so the risk is too high, IMO. Better to wait and see where it opens for trading after the bell and then apply your trading plan accordingly.

Anyway, that what I would be thinking if I were considering this stock for trading Friday. The most important thing is to do your own homework and not blindly follow someone else's advice that you read on an Internet message board (this one included). Think for yourself and always limit your risk.
 
It did break out but the volume is kinda suspect. I would be a bit reticent on Friday if it continues higher without heavy volume.
 
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