Apparently there was a bad bond auction yesterday ... in any event, there was a beautiful "impulse bar" (an old Linda Raschke term) at 1 PM after which price zig-zagged creating a perfect set-up on the five minute. Below are the TLT and TBT (the short fund) charts which are worth close study:
TLT 5 minute
TBT 5 minute
See quite a few longs out there for Thursday (incl. INTC and KLAC) but I will go with Mister Softee here. Not great risk/reward if you're stopping below the bottom of that hammer, but clever day traders always find better stops than those working off of daily charts.
Receive these free daily trading ideas by email.
Five minute SPXU chart here ... SPXU is an ultrashort (-3x) SPX ETF ... block those acronyms! Good liquidity, should be a decent daytrading vehicle. Anyway, when the market is going up, I like to look short the short funds. SPXU gave two spots yesterday, but working off the five minute is tricky because the stops are so tight. If you shorted the 12:55 bar (spot 1) and put your stop above at 55.60, you would have been picked off. But if you put your initial stop above the 11:20 swing at, say, 56.05, you'd be risking more than you'd be expecting to make (at target 1), and that's a recipe for disaster. Never risk 50 cents to make 50 cents.
I love watching Jimmy DiResta make stuff. Here he is free-handing the bandsaw again. Take note of the shape of the pinkie finger on his left hand. It met the bandsaw up close one time.
I first learned about Jimmy DiResta from his TV show "Dirty Money," which is still the best trash-to-cash show I've ever seen. It ran only one season which proves that the TV gods are not just.
Already triggered as a short ... put it on your list to watch.
Receive these free daily trading ideas by email.
Gray concrete blocks as far as the eye can see, all unaffordable to the average person (looking in that direction -- northwest).
Here's the three minute chart for Twitter ... I see one "obvious" spot to get short just after noon ... interested to know how day traders who were short this played it. It was liquid enough to draw a very clean chart even down on the one minute, where a short spot appeared a bit earlier (at 11:35 or so). Drop me a line if you made money shorting this one intraday.
This is another beer I favor at Slow Boat ... at 8% you only need a pint of this on an empty tummy to get an edge on, not a buzz, just a vaguely happy feeling. Bitterness at 28 and those faint vanilla notes make it very pleasing. At 55元 (US$8.83) a pint it's their most expensive beer, but as I said, you really only need one to feel good.
Looks like a short to me... set the alerts, etc.
Receive these free daily trading ideas by email.
"It's dynamite grass."
Poor old Roger down on the farm with daughter Marigold ... a world away from brunch at the Plaza.
