I started my trading career with Tim Sykes and when my breakout strategy did not work for me anymore and when I was lost, I joined Investors Underground. The DVD’s that helped me the most were Tim Grittani’s Trading Tickers and Nate Michaud’s Tandem Trader. Software that has helped many trader can be found here: Trade Ideas software.
My PM watch list for the day was: GERN MDXG TRXC SESN HEAR SHLD ARQL ASNA SMRT VSTM NIHD ARWR I LLEX EGY (all potential shorts). SNES dip buy if 1.35 basis. WMLP dip buy at 3.00, with 2.90 guide.
My main focus at open was GERN, due to the massive volume. I was also eyeing SMRT, WMLP and SNES. Volume was all round today, so I had to make my choice. GERN is a stock that I trader before, so for me this was a no brainer and I was ready to attack with size. This happens when you have seen a stock before. You know how they move and how they can bite. GERN had the exact same pattern as in March and April. This gave me confidence that this will smoke/squeeze some bears at open and that this squeeze would offer some opportunity. SMRT caught my attention too, when the volume reached over 1 million. I recognized the consolidation and went in with a small starter / feeler.
VWAP is always important too, as an indicator. But I prefer to use support and resistance levels. These tend to offer more reliability. What I do not like to see are doji’s or spikes when a stock is ramping or going parabolic. That means that people are selling into the spikes. This is a good indicator though, that a stock is reaching resistance and might slow down and go down completely. This is exactly what happened on GERN and also, in a way, with SMRT. Although, SMRT was more of a Level 2 game for me.
As a close, I would like to add that I think it is irony that NIHD is running too, together with GERN and SMRT. The same happened end of March / early April. If NIHD had any interesting volume today, I’d have to call this post Deja Vu part two! History repeat itself, especially in trading.
It looked like a chatroom push in my opinion from open, so I attacked that 5.10 to 5.17 candle with shorts at bid. Added when VWAP was tested at 4.90 a few times. Wanted to add some more when VWAP was tested the second time, but didn’t because there was some strong resistance shown on Level 2 at 4.87 and 4.86. These bids turned out to be fake bids and were absorbed, because GERN washed out to 4.80. Covered into that 4.70 wash for a decent gain. My initial plan was to short at 4.85 (yesterdays highs). But look at that volume at 9:39AM – 9:41AM! You would be crazy to short into those candles. I surely do not have that kind of guts. Should have shorted again at 5.15ish. But look at the difference from those opening candles. The 11AM candles are being sold into as well, but this would have meant that I’d had to chase into weakness and that is something risky!
As mentioned before, I was eyeing that consolidation and 1 million volume mark to short attack this play, that has been up for a while now. It is a decent earnings winner, so you should expect some upside. My plan was to short into a push towards 3.75 and use 4.00 resistance as guide. When the 3.70’s seems to have failed, I entered my shorts and covered into 3.50 wash.
SNES – WMPL
These did not go as I wanted. For me to go long on SNES, 1.35 should have based. It did not and washed out to 1,20ish. And WMLP 3.00 or 2.90 should have based or offer some resistance. It did not, so I avoided these tickers.
kindly note that this blog post should not be treated as advice, trade advice or any of the sort. Always trade your own plan, cut losses quickly and never follow any alerts. Always do your own research and trade accordingly!