Filtering by Tag: trading idea

Trailing a Stop in LBTYK

Added on by C. Maoxian.

I sent out this short set-up in $LBTYK for April 27 to everyone who signed up for my free Daily Trading Idea ... sign up now if you haven't already done so.

Here's the image I sent in the email ... I checked my records and I did short $35.10 at 2017-04-27, 12:09:35 on ISLAND, no doubt by accident after transposing the numbers ... I do this at least ten times a day, make trading mistakes I mean ... confidence-inspiring, I know).

Seven days later it looks like this:

So the question is what do you do when it gaps below the target? I'm going to cover half tomorrow morning and trail the stop above today's high of $32.54. I can see this thing going down to $29 or even $26, but I want to take half off the table now. If you have any better ideas, I'm eager to hear them (on Twitter or via email), and I will share them in turn!

Initial risk was 44 cents and the target was over $2 away so the risk/reward was 1:5, and if I cover near where it closed it will be closer to 1:10 ... a "ten bagger."

Sign up for my Daily Trading Idea today, it's free!

UPDATE: @DavidTaggart suggested moving the stop to the high of two days before every time it makes a new low. @Contrahour suggested an Average True Range based stop, which is a little more complicated, so I'll go David's high of two days ago for now.

Reviving the Daily Trading Idea

Added on by C. Maoxian.

Now that I'm in front of the screen full-time once again, I've decided to revive the Daily Trading Idea newsletter. Every night I send out a trade idea for the following weekday. You can sign up by emailing me at maoxian@gmail.com or filling out the contact form

The ideas are always simple and straightforward, taken from the daily chart. I'll keep a spreadsheet in Google Sheets that tracks their progress, which anyone can look at at any time. And I plan to share short videos of any day trades I make in the daily trading ideas. 

Here's the idea for Monday, April 24, 2017. Short $BIDU. The green line marks the entry area, red line marks the protective stop area, and purple line marks the target area. Sign up by email since I won't be posting these to the blog or Twitter ... it will be a strictly "members only" thing ... free for now, of course. 

Click to enlarge

QQQ to $110

Added on by C. Maoxian.

The set-up across volatility I pointed out before still stands, even though the Swiss revaluation threw markets for a loop, and the Q's look like they should rally from here.  That's my take on things. 

Gilead Sciences Back to $86

Added on by C. Maoxian.

This stock got hit before Christmas on some news about a deal with Express Scripts ... after going sideways since last August.  Recent up move may be a nice spot to put on a short if it breaks below $101.75.  Keep an eye on it.

Apple Back to $120

Added on by C. Maoxian.

Sorry for the paucity of posts, been jetlagged after our return from the holidays.

Seeing this bullish pattern across a lot of things including Intel, Texas Instruments, Taiwan Semi., and Micron -- look at all those charts if you have time. Anyway, Apple has its fans so I thought I'd feature it.  I'm seeing lots of iPhone 6s and especially 6+s in the hands of my Chinese colleagues and elevator co-riders.  I continue to use my $27 robin's egg blue Nokia 1050 happily.

Incidentally, I'm still bearish on Twitter and expect it to get under $35 even with these bullish tech stock patterns.

Gap Back To $35

Added on by C. Maoxian.

Gap's ticker symbol is GPS even though I think GAP is available.  Anyway, if it breaks down from the bearish wedge, it could go back to $35.

Twitter Back Below $35

Added on by C. Maoxian.

The trend in Twitter is down ... bad since the earnings miss / gap down in October.  This set-up should take it below $35,  but if your stop were above the swing high of $39.25, the risk / reward makes no sense.  For day traders working off very short time frames (3-min., 5-min.) they can make it work. Keep an eye on it. 

Try Try Again In Alibaba

Added on by C. Maoxian.

Alibaba was my long idea from the other day and the worst possible thing happened to it... price drops, picks off everyone down to $101.20 then reverses on a dime and flies closing at $107.50. Not nice.  I'm still bullish on it, still see $120s for sure, just realize that you can't trade it like a big dummy. 

Countertrend KEY Turns

Added on by C. Maoxian.

I look at that entire recent rally in KEY as a countertrend move which has now come to an end ... I'd like it to give everything back. Look at RF or FITB among other regional banks for confirmation. If the set-up fails, that's also valuable information and will show that the rotation into financials has legs.