May 16, 2007
Stock Du Jour (WINN) & Random Observations
OK morning and through lunch time, but then some serious selling hit the market in the afternoon and continued into the close. Aggressive risk management (moving stops up) on any longs established in the morning would have saved day traders some money.
A number of Notable New Lows: Starbucks (SBUX), Whole Foods (WFMI), JDS Uniphase (JDSU), US Airways (LCC), Liz Claiborne (LIZ), and Komag (KMAG).
Quite a few Notable New Highs as well: the Dow Industrials (DIA), Verizon (VZ), AT&T (T), McDonald’s (MCD), Nokia (NOK), Monsanto (MON), and Crocs (CROX).
When I sent out the 15 Ideas letter back in mid-March, a generous donor, Trader Eyal, emailed me then and said, “Do you realize that over half of these ideas are Dow Industrial Average component stocks?” I didn’t realize that at the time, but the implications were pretty clear!
Winn-Dixie (WINN) was the stock du jour, and was front and center on the screen of every day trader around the globe.
May 16th, 2007 at 1:43 pm
Maoxian,
I would like to understand your charts better - can you point me to a key to the symbols above and below the candlesticks. (I need a decoder ring!)
Thanx
May 16th, 2007 at 2:47 pm
Event: I should write a post about this since 10 million people have asked me the same question. Gray dots and diamonds are 20 bar lows and highs, respectively. D are dojis, red sevens are wide range bars, blue sevens are narrow range bars. Lastly bars are color coded: inside are blue, outside are black, up are green, and down are red. Did I forget anything?
May 16th, 2007 at 8:29 pm
Maoxian,
Is your interday method to find a breakout with volume conformation followed by small bodied candles at lower volume near or at the top of the breakout candle that then defines the risk/reward? Sorry if it is a dummy question but I am trying learn whatever I can.
May 16th, 2007 at 9:19 pm
Hudson: Do you mean intraday or day trading method? First read all the Dummy Lessons and everything should be clear.
May 17th, 2007 at 4:41 am
CM: I happen to have my 15-min and 30-min charts set up very close to yours (narrow range bars, inside bars, outside bars, HOD, LOD). This is probably trivial, but I can’t help to ask… I always thought your blue sevens are NR7’s. Now that I look closer, they are more like NR4’s? If so, I wonder why the 4th bar of WINN is not a blue seven?
I traded WINN, but got out too early and left too much on the table. Looks like you almost look at 15-min charts exclusively now, weren’t you more like the 30-min type?
May 17th, 2007 at 7:15 am
Spock: They’re NR7s. Do you mean the fourth bar in the pre-open session? Can’t tell which bar you’re asking about, but if the computer doesn’t mark it a blue 7 then it isn’t an NR7.
When we lived in London I did use the 30-min charts almost exclusively, but switched to 15-min when I got a chance to check the charts more often during the day.
May 17th, 2007 at 7:43 am
OK, it is clearer. I could pick the long entry on the last 10 long charts within 5 cents. So, where do I go to learn what a NR7 is?(narrow range X?)
May 17th, 2007 at 8:06 am
Hudson: NR7 just means the bar has the narrowest range (high - low) of the last seven bars. You want areas of range contraction to find low risk spots to enter.
May 17th, 2007 at 8:47 am
Thank you, I also found many posts on Mike’s site. I shall be experimenting the dummy trade in fake denaros
for a while to be sure….
May 17th, 2007 at 9:51 am
Hudson: Use some real denaros but *very* small size instead — I’m not a fan a “paper” trading.
May 17th, 2007 at 10:47 am
CM: I was referring to the 4th bar after market opens, which for some reasons, looks more like the 5th bar (red, narrow range) on your chart. But like you said, it won’t be marked since you are showing NR7’s.
Problem is if they are NR7’s, then I’ll be scratching my head, as my chart shows NR7’s as well and we have them highlighted for different bars. For instance, mine marks the 9th bar (ends @ 11:45) as a NR7, but not yours.
I hope I haven’t made things too complicated, LOL.
May 17th, 2007 at 10:50 am
Ah… never mind.
I guess you have each bar marked as one type (NR7, 20 bar high, etc) exclusively, and it can’t be a NR7 and a 20 bar high at the same time. If this is the case, it’d explain all the discrepancies between our charts.
May 17th, 2007 at 11:13 am
Spock: Yes, that’s true, stupid Metastock can only mark a bar as one type which is a serious failing and you’re sharp to immediately see that BUT I think the big difference in our bars can be explained by the fact that I time stamp the bars at the end of the period, not the beginning. This probably explains the miscount (your bar 4 is my bar 5).
Anyway, the 5th bar on my chart, the little red one, isn’t an NR7 because it’s wider than the pre-open little red bar … if you strike the non-regular-hours data from the chart, then that 5th bar may very well be an NR7, though I haven’t checked because I’m away from my computer now.
Anyway, things are pretty clear now, ain’t they? ;-)
May 17th, 2007 at 11:48 am
水晶 ;-) Thanks CM.
May 17th, 2007 at 11:57 am
水泥 is more like it. ;-)