06/27 – CLNE – ENPH push ‘n fail

I started my day trading career with Tim Sykes and when I wanted to learn more, 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 me in my early years was: Trade Ideas software. Now I use FINVIZ ELITE. Click on the highlighted links for more details. For my main page, please click here: Day trading for beginners


 

Watch list for the day: TRXC, AXON, VSTM, GERN, CLNE, ARQL and VKTX

THE PUSH

Today was all about the failed pushes. After market closed I would see a lot of failed pushes. ENPH, CLNE, GERN, ARQL, VSTM, to name a few, all failed to move upwards. The deciding factor to trade CLNE and ENPH was volume. Especially the volume n ENPH, which took a while to setup.

To check which tickers have the best potential, it is important to look at the overall watch list. As there are approximately 15 tickers on my watch list, what I like to do, is to compare the volume with the rest of the tickers on my watch list. The ticker with the most volume will have my main attention. Unfortunately for me, TRXC did not have borrows, so that was off my main list quite soon from opening. CLNE picked up speed and so did ENPH, soon there after. I made a sweet gain on CLNE, which “pushed” to previous resistance at 4.00 and failed. Went under VWAP and failed a follow up push. I traded ENPH on the way down. Started a short attack from the 7.35, which was previous resistance too before.

CLNE – push, fail, backside short

This ticker has been on my list for a while. Clean Energy Fuels is piggy back riding on Natural Gas prizes. They are also being purchased by the massive French oil giant Total.

The main driver for this move was the 52 week breakout the day before. This seemed kind of heavy and did not move too much IMO. Volume was declining, 12 million a few days before to to 4 million today) and the stock seemed somewhat weak. Looking at the daily chart, this ticker has the tendency to move up a few days and give it all back again. With the acquisition by total, it’s no wonder that this stock is in an uptrend. An uptrend is good, as stocks always give back a bit too. This is exactly what I take advantage of, because it is easier to review support and resistance levels to trade from.

CLNE failed at open. 4.00 was heavy. I started with a small position when 4 dollars failed to breakout. Added to my position when VWAP was ignored and sized up a bunch when 3.90 became heavy. From there on it was a simple, stress free ride until the 3.70 to 3.55 wash and I covered my position there. I wanted to add some more at the green to red momentum, but my plan did not allow this (also, I was in ENPH at this point too). The next support level was at 3.50 and green to red moves also tend to turn around (look at TRXC, also at 52 week highs). For Thursday, I am expecting a weak open and a push to breakout some more to 4.20 – 4.50. From there, there should be some more resistance from way back in 2016 – 2015.

ENPH, Push, fail ‘n bail

ENPH has a nice daily chart too. Beautiful resistance at 8.00, which gives this ticker some room to move. She did go from oversold to overbought rather quickly. But I believe that, when stocks move up quickly, it will will give back its gains as quickly too.

The trade it self was not something to cheer about. Took some risk as well. Resistance was at 7.35 and when this failed, VWAP failed fairly quickly as well. I started my short with a small position at 7.35 and sized in around 7.00 for a fair position. Covered at the end of the day, as I held this short position for a while. I covered my position in the rebound from 6.85 to 6.90.

Conclusion

Push ‘n fail seems to be the way to go for me now. It is similar as shorting into a parabolic move at a resistance point, but you look for overhead resistance, out of the gates at open. It is not a risk free setup as I do see some dangers. But I tend to cut losses quickly, so this does not worry me too much. I would like to say that this strategy does not work for people who cannot handle stress. When you do size up, and I size up before the backside of the move, you need to have confidence. Because size can, and will, screw with your brain.

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