Monday, March 7, 2011


I traded $JRCC after way better than expected earnings this morning. I went into the stock without waiting for a proper set up. Ended up taking a small loss of $19.50 plus $10.00 in commissions so I was not hurt too badly. However, I did burn a precious day trade.

Wanted to touch on $GPR also which I got nicked out of at the lows as I showed in my last video review. Had I not been shaken out of this trade; I could have been sitting on near 50% gains as this stock is now trading above $1.00 after hours!

The big movers continue to show me that its best buy the break to new HOD after an intraday base/consolidation of at least an hour or two. Case in point: $SYMX. This stock met all the criteria I look for yesterday and then consolidated for about 1hr and 15mins into the close of trade and then broke out on volume right before the close of trade. This was the buy! The stock went up over 50% today! Another example was $MPET.

Need to practice to wait until at least midday or the afternoon to take trades unless I have more than 1 day trade at my disposal! Better risk/reward and less likely to get stopped out.

So I badly wanted to buy $ATRN heading into the close of trade especially after big "AAPL related news". But I did not like the nasty spread in this which was as wide as $0.13 at times. Also I did not like that it was unable to break to new highs heading into the close of trading so I did not feel comfortable buying this especially with no day trades available to allow me to take a quick loss if the setup failed. Risk/reward was simply not there plus the markets are very weak! The action looks very similar to April/May top in 2010.

So right now I'm 100% cash and very happy/at ease! I have no interesting plays on watch for tomorrow. So unless there is a really really good break out that I can not say no to then I will not trade tomorrow and conserve my day trade for better conditions.

Good luck and good trading!

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