Oh how I wish earnings season occurred more frequently! This morning saw several retailers with earnings; my focus was on DKS and the expected sympathy plays I projected within NKE and FL potentially as a result. DKS, to no surprise, missed and actually guided lower for backhalf, consequently giving them a nice 10% slap pre market. When results come out like this, I like to shift my focus to competitors and vendors that can be impacted by these results and/or potentially be in the same boat but have not yet reported and will undoubtedly get punished as well by the street.
I started in on NKE at 10 am with a fail on the HOD break at 10am.
FL was a bit tougher, I started in at 9:40am, a little earlier than I typically like to but because it had gapped down I thought this could be the end of the winning shorts covering and a potential new move downward. I am glad I covered when I did as this ended up with a bounce and not really going anywhere the rest of the day.
This was probably my best play of the day and the one I am most proud of my execution despite the low volume when I started into the trade. I had started very small into this short yesterday, given the extended nature of the daily chart. My intent was to build into any move up, with a full stop over yesterday’s high. I was looking to add and reduce stop with any large move and confirmed trend direction under vwap but it didn’t happen during the morning session. I piled in pretty aggressively at 10am as it seemed to be hesitating a bit and was not getting much of a bid, so I thought this might be the moment. I ended up with an average of 49.08 on some decent size, so when that stuff back to vwap happened I took no chances on a potential rebounded as this ticker has done lately and took 2/3 off the table.
Please finish this quote for me and then we can be friends. I kid, kind of. The more I trade, the more convinced I am that it is Poker’s twin. One of my all time favorite movies is “Rounders”. I won’t even begin to lay down some of the worthy market related quotes that are absolute gems in this movie. But I will slide this one in front of you: Continue reading “If you can’t spot the sucker in the room…”
One play a day keeps the day job away is the theme today….Not feeling 100%, I slept in a bit and started scanning to find a trade that had a solid r/r for the afternoon.
CCL was in the IU scan yesterday looking for failure and a solid fade, so when it pulled up with a failed follow through at its highs and the market pulling back with decent volume, I felt it was an opportunity worth taking. My stop was over the high of the day, with an initial goal of VWAP and then potential add if it failed. What a beauty…I am happy about holding largely down to the whole number for 1/2 of my shares profits. This market has been tricky about dropping solidly only to rip back up. It makes it critical to take profits on any solid rips or cracks lest you see it diminish in a bounce.
One play with such a tight r/r produced an awesome profit, so I closed the computer and called it a day! Hope your trading day was solid!
So, this weekend I went to my favorite quiet beach and had a serious talk with myself. You know the kind of talk that I mean? I have had an incredible first 5 months as an independent trader, it has far exceeded what I had expected or hoped for but last week I seriously felt like a maniac trading. I feel blessed I ended solidly green but felt so trashed and beat up as if I had ended red. The opportunities and ranges this market is giving is incredible, however at the end of the day what has gotten me to where I am is trading less quantity and more quality. Continue reading “Day One”
What a week of insane moves! As I reflect and analyze my trades from the prior week, my biggest realization is that I need to SLOW down. Seriously, this is how I looked last week:
Continue reading “Adjusting the process”
How does that song go..”time just keeps ticking, ticking, ticking…into the future”… Amazing that we are already into August, but excited to see the beginning of fall trading and earnings season as a full time trader now. Let’s go! Continue reading “Keeping Losses Tight”