Copy the pic and paste it into the post. It's always worked for me.
The Pinch Journal
- Thread starter .sigma
- Start date
Copy the pic and paste it into the post. It's always worked for me.
thanks! I figured it out
Last edited:
When scanning for potential pieces of shit stocks I have a few metrics I abide by.
1. If I'm trading stock the underlying has to be <$15/share.
2. If I'm trading the options I'm speculating for an up-move so I usually trade OTM calls or ATM bull call spreads.
3. Underlying has to be Relatively liquid (although sometimes I trade really illiquid crap like 500k avg daily vol)
4. Price action has to be clean. Each stock moves in its own unique way. Some underlyings price moves so swift and nice, others price looks choppy and weird.
5. Study the underlyings past price movements and also past pinches. I will observe if the underlying has had pinches in its past (which almost all stocks do since stocks will eventually trend downward).
6. Make sure theres no earnings or binary event in the news for the underlying when entering a trade.
Theres more but my mind just went completely blank.
1. If I'm trading stock the underlying has to be <$15/share.
2. If I'm trading the options I'm speculating for an up-move so I usually trade OTM calls or ATM bull call spreads.
3. Underlying has to be Relatively liquid (although sometimes I trade really illiquid crap like 500k avg daily vol)
4. Price action has to be clean. Each stock moves in its own unique way. Some underlyings price moves so swift and nice, others price looks choppy and weird.
5. Study the underlyings past price movements and also past pinches. I will observe if the underlying has had pinches in its past (which almost all stocks do since stocks will eventually trend downward).
6. Make sure theres no earnings or binary event in the news for the underlying when entering a trade.
Theres more but my mind just went completely blank.
$XOG - Extraction Oil & Gas
This stock has been on my radar since the beginning of October (on my other journal)
If you see it initially pinched back in the beginning of Nov but retracted fast and has since made new lows. I'm looking for a double pinch soon and a mark up back to the Value Volume Area around $2.00 spot. Although I don't really like this stocks price action we'll see how she plays out. I will only enter once I see a reason to (strength). Keeping one eye on this.
*EDIT: Also wanted to mention $XOG has a wide pinch forming on its weekly 3 year chart. Will post later.
This stock has been on my radar since the beginning of October (on my other journal)
If you see it initially pinched back in the beginning of Nov but retracted fast and has since made new lows. I'm looking for a double pinch soon and a mark up back to the Value Volume Area around $2.00 spot. Although I don't really like this stocks price action we'll see how she plays out. I will only enter once I see a reason to (strength). Keeping one eye on this.
*EDIT: Also wanted to mention $XOG has a wide pinch forming on its weekly 3 year chart. Will post later.
$CRR - Carbon Ceramics
This stock is a complete mess. From a high of $183.34 in 2011 to a low of .35 cents now, this caught my eye.
Its sold off more after the recent climax as you can see and notice the drift downwards is accompanied by lower and lower vol (which is good), and notice the last trading day was green with higher vol (this is bullish).
Now pinches come in all shapes and sizes and this is considered a wide pinch. I don't like these types (the closer the pinch the better). But I mmight buy some shares since this underlying is so cheap.
This stock is a complete mess. From a high of $183.34 in 2011 to a low of .35 cents now, this caught my eye.
Its sold off more after the recent climax as you can see and notice the drift downwards is accompanied by lower and lower vol (which is good), and notice the last trading day was green with higher vol (this is bullish).
Now pinches come in all shapes and sizes and this is considered a wide pinch. I don't like these types (the closer the pinch the better). But I mmight buy some shares since this underlying is so cheap.
$EXTN - Exterran Corporation
This is another wide pinch. Whenever
This is another wide pinch. Whenever
I see a wider pinch play I'm always aware there could still be room for potential downside.
REMEMBER: The tighter the pinch (the closer the PPO/ADX "collide") the less risk you have to the downside. Its kind of like a "temporary" bottom floor, and sometimes is the floor for awhile.
EXTN is illiquid and I'm most likely not going to trade this one. But nonetheless it looks alright.
REMEMBER: The tighter the pinch (the closer the PPO/ADX "collide") the less risk you have to the downside. Its kind of like a "temporary" bottom floor, and sometimes is the floor for awhile.
EXTN is illiquid and I'm most likely not going to trade this one. But nonetheless it looks alright.
$GLOP - Gaslog Partners.
I don't even think this is a company?? Too lazy to find out because most likely not going to trade this one. 149k daily shares on a $14 stock yuck.
Nonetheless I'm posting this one for aesthetic purposes. This is a pretty close pinch.. not exactly the nicest looking one Ive seen by far but look for the PPO/ADX to collide and spot geometrically drift up in a Brownian motion like manner.
P.S: Sorry about my editing skills, I don't have the paid subscription to stockcharts.com so annotating these charts is annoying. I'll get the paid version soon though, IMO Stockcharts.com has the best visually looking charts especially from a scale perspective.
I don't even think this is a company?? Too lazy to find out because most likely not going to trade this one. 149k daily shares on a $14 stock yuck.
Nonetheless I'm posting this one for aesthetic purposes. This is a pretty close pinch.. not exactly the nicest looking one Ive seen by far but look for the PPO/ADX to collide and spot geometrically drift up in a Brownian motion like manner.
P.S: Sorry about my editing skills, I don't have the paid subscription to stockcharts.com so annotating these charts is annoying. I'll get the paid version soon though, IMO Stockcharts.com has the best visually looking charts especially from a scale perspective.
As you can see from my chart, SMLP had a beautiful pinch back in the end of August (which I traded). And now its selling off hard and sitting cleanly on the bottom diagonal.
Although this is considered a wide pinch and I'd rather have the PPO/ADX closer such as it was back in August, SMLP looks good at this price because I'm looking for a bounce off this downward trendline I drew. We will see!
I have many theories when it comes to price discovery, market markers, how black-box's function, and overall the mechanics of the stock market and the derivatives markets.
After looking at thousands of charts and reading many quantitative finance books I've developed some guidelines and alternative hypothesis on how I believe the markets maneuver and behave. I will outline all of these thoughts in this journal as time permits. I am excited for 2020 and I believe we will see more volatility in the near future.
Remember: This strategy does not work well in bull market.
Let me reiterate.. its very hard to find stocks that are down trending in a bull market, hence its hard to find pinch plays. When turbulence hits the markets I'll have 30-50 tickers on my list for the week. Nowadays I'm lucky to get 10 good tickers in a week. So yes, I can't wait for the markets to shift down for a bit for that reason and also for my options strategies which I may discuss here as well if it warrants it.
For now I'm focusing on what I do best, finding piece of shit stocks and ride the correction for some ticks and repeat. Rinse and get back in.
After looking at thousands of charts and reading many quantitative finance books I've developed some guidelines and alternative hypothesis on how I believe the markets maneuver and behave. I will outline all of these thoughts in this journal as time permits. I am excited for 2020 and I believe we will see more volatility in the near future.
Remember: This strategy does not work well in bull market.
Let me reiterate.. its very hard to find stocks that are down trending in a bull market, hence its hard to find pinch plays. When turbulence hits the markets I'll have 30-50 tickers on my list for the week. Nowadays I'm lucky to get 10 good tickers in a week. So yes, I can't wait for the markets to shift down for a bit for that reason and also for my options strategies which I may discuss here as well if it warrants it.
For now I'm focusing on what I do best, finding piece of shit stocks and ride the correction for some ticks and repeat. Rinse and get back in.
"It seems to me perfectly obvious when my enemies, my friends and the public in general pretend not to understand the meaning of the images that arise arid that I transcribe in my pictures, How can you expect then to understand them when I myself, who am their "maker", understand them as little?"
#Dali
#Dali