Quote of the Week

"The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance."


- Ed Seykota

Away until Labor Day

Taking some time off will be back to blogging on Labor Day. Still taking emails and any questions.

No matter what stage you are in your trading...profitable, treading water or struggling to succeed always remember this quote.

"Man is not made for defeat. A man can be destroyed but not defeated" - Ernest Hemingway

Also added one of my favorite commercials enjoy!

Gap and Go 15 minute - CREE

Daily Chart

15 Minute chart

5 minute chart

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Stock:CREE

Entry Bar:2
Time Frame: 15
Entry Green Line: 53.49 SHORT
Stop Red Line: 54.01
Result: up to .83
Setup Grade: B+
Notes: Ugly market and ugly daily chart. Scale out as the trade goes your way and move the stop to even. Made a little and then stopped out at the entry price. Nice setup just didn't the push down I was hoping for. Use the 5 minute chart to time entry.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Wedge Buster - POT

1 minute chart

5 minute chart mini chart

Daily Chart

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Stock:POT

Entry Bar: 2
Time Frame: 5 minute
Entry Green Line: 151.64
Stop Red Line: 151.10
Result: up to 1.75
Setup Grade: B+
Notes: Stocks up pre market and so was this stock...see daily chart. Not the perfect wedge but if you scale down to the one minute chart it gives the go for the trade. Scale out as you go. Was stopped out of remaining shares at my entry price.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Quote of the Week

"People who look for easy money invariable pay for the privilege of proving conclusively that it cannot be found on this earth."

- Jesse Livermore

Gap and Go 10 minute - INTU

5 minute chart - Stop placement

Daily Chart

10 minute chart

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Stock:INTU

Entry Bar: 3
Time Frame: 10 minute
Entry Green Line: 42.20
Stop Red Line: 41.75...using 5 minute chart
Result: up to 1.78
Setup Grade: B+
Notes: exploding on the daily....nice bar on the 10 minute chart, used the 5 minute chart for a better stop placement. Scale as you go, hold some all day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

E-Mini multiple resistance Short - ES

ES emini 5 minute chart

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Stock:ES Emini
Time Frame: 5 minute
Entry Green Line: 1089 SHORT
Stop Red Line: 1092
Result: +5 and +8
Setup Grade: A-
Notes: Chart may be tough to read....4 levels of resistance: Pivot (purple line), 20 (light blue), 200 (red), and 600 (dark blue) SMA.............missed another 6 points but that's trading. The more support and resistance at a level the better your odds.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and Go - POT

5 minute chart

Daily Chart

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Stock:POT

Entry Bar: 2
Time Frame: 5 min
Entry Green Line: 146.85
Stop Red Line: 145.32
Result:
Setup Grade: B+
Notes: Scale out as you go....there are many ways to trail your trailing stop...low of last candle, support/resistance or a close below a moving average. Here I am trailing this trade with a close below the 20SMA on the 5 minute chart. Included is the pre market data. Still in the trade and room on the Daily to run...little risky after huge gap up the previous day but looking for more short covering. I will close out at the end of the day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and Go - CLF

Daily Chart

5 minute chart

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Stock:CLF

Entry Bar:4
Time Frame: 5 minute chart
Entry Green Line: 63.51
Stop Red Line: 63.08
Result: up to .99
Setup Grade: B+
Notes: Scale as you go...I scaled out twice and tired to let some run... stopped out at entry.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Quote of the Week

"A man must believe in himself and his judgement if he expects to make a living at this game."

- Jesse Livermore

1 minute chart breakdown - KSS

Daily Chart

1 Minute Chart

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Stock:KSS

Entry Bar: 39
Time Frame: 1 minute chart
Entry Green Line: 46.29
Stop Red Line: 46.62
Result: up to .71
Setup Grade: B+
Notes: weak daily chart, and one minute chart breaks through 30 minute low. Scale as you go, made a push down and then you would have been stopped out at your entry when it retraced. Still nice play and winner.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Double Dynmite - Pass on this trade

Daily Chart - extended

5 minute chart

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Stock:TTM

Entry Bar: 4
Time Frame: 5 minute chart
Entry Green Line: 21.51
Stop Red Line: 21.35
Result: up to .14
Setup Grade: C
Notes: Great example of two nice double dynamite bars but I would pass. First the market gaped down and was very bearish. 2nd the daily chart is overextended (see chart). If entered would have waited for .50 to break. Could have possible scaled a small gainer but either way the market and daily chart are fighting you so Id pass.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and Go short - HPQ

Daily Chart

5 minute chart

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Stock:HPQ

Entry Bar: 2
Time Frame: 5 minute chart
Entry Green Line: 41.95 SHORT
Stop Red Line: 42.16
Result: up to 1.30
Setup Grade: B+
Notes: Market gaping down and HPQ breaking support on its daily. Scale out and let it ride all day, sell at the close. Little extended from the day before but liked the market direction, daily chart and risk to reward of 25 cents.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Double Dynamite - PEGA Short

Daily Chart

5 minute chart

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Stock:PEGA

Entry Bar: 10
Time Frame: 5 minute
Entry Green Line:25.07 SHORT
Stop Red Line: 25.38
Result: .50 to 1.00
Setup Grade: B
Notes: This ran all day. I got a nice piece but screwed up my trailing stop on my remaining 1/2 shares. Would have gotten out before the FED announcement anyway. Bearish Daily chart and market gapped down. Not a perfect double dynamite but two small redish bars rolling over to form a high risk high reward setup.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Quote of the Week

Quotes from Reminiscences of a Stock Operator

“I can’t sleep” answered the nervous one.
“Why not?” asked the friend.
“I am carrying so much cotton that I can’t sleep thinking about. It is wearing me out. What can I do?”
“Sell down to the sleeping point”, answered the friend.

Wedge Buster - ADM

Daily Chart

5 minute chart

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Stock:ADM

Entry Bar: 4
Time Frame: 5 minute
Entry Green Line: 29.47
Stop Red Line: 29.28
Result: .20 to .93
Setup Grade: B
Notes: Not the perfect wedge play but still near the 5 minute high...what i liked most was the daily chart....the 2nd time busting threw the 200SMA. Two days ago it took a shot and failed. Once I saw the break threw again and the huge volume I was looking for a setup. My thought process was that many shorts keep there stops at the 200SMA. and the push threw will cause even more short covering. This in turn got me to be a little but more risky with the setup and it paid off. Even if it didn't....that is why we have a stop.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

1 minute chart breakout - RIG

1 minute chart

Daily Chart

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Stock:RIG

Entry Bar: 13
Time Frame:1 minute chart
Entry Green Line: 52.52
Stop Red Line: 51.87
Result:
Setup Grade: B
Notes: small break on the Daily, but nice early morning volume. Scale as you go, hold some all day and sell at the close.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

15 Minute gap & go - CLF

Daily Chart

15 minute chart

5 minute chart

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Stock: HLF

Entry Bar: 2
Time Frame: 5 or 15
Entry Green Line: 53.41
Stop Red Line: 52.99 (using 5 minute chart..more risk but more reward)
Result: up to 2.40
Setup Grade: B
Notes: Nice break on the daily chart. Took a stop under the 3rd five minute candle, under the whole number. Thought I was going to be stopped out and it took off and I rode it all day. Scale as you go.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

15 Minute gap & go - CLF

15 Minute chart

Daily Chart

5 minute chart

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Stock: CLF

Entry Bar: 2
Time Frame: 15 minute
Entry Green Line: 59.01
Stop Red Line: 58.49
Result: .50 to 1.77
Setup Grade: B+
Notes: Breaking on the daily, nice consolidation on the 5. Scale as you go, can follow a stop using the 20SMA on the 5 minute chart. Close out at the end of the day.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.