Warrior Trading Blog

$3K A Day Keep a Job Away | Mike’s Trade Recap

mike_8.29

Hey, what’s up guys? Well, I’m ending the day nicely in the green and you know what they say, 3K a day keeps the job away. And we had a really solid morning of trading here, on a short sided trade right out of the open, for a really solid win. So let’s take a few minutes and break it down in today’s recap.

All right, good afternoon guys. Another solid day here. This morning on BBY. We had a good short trade on this right out of the gates, and I was able to get a little bit of continuation, not the full move I was looking for, again, but enough to allow us to lock in a very solid day of trading, especially within the first 15 to 20 minutes of the day, which is always … it’s always nice to be done that quick. So BBY, again set up pretty nicely for us. We didn’t get to continuation because the spy reversed, but that’s okay. As long as you’re quick, and you take these quick moves, with a little bit more size, because you’re confident in the type of move that it can make with the technicals, then you can capitalize on them. So let’s take a few minutes and we’ll break down BBY, and the trade that I took.

All right, so BBY, the first thing we noticed on this this morning, it’s gapping well below its major moving averages. That’s always something that is important, because that tells us that the stock is exhibiting weakness, right? So the fact that we’re below the 200-day moving average, we also have a trendline that comes into play, an ascending support line, and that’s where we got short, just below that, as we started to come down below that level, and we caught this move to the downside, through $60 … around $62s.

All right, so looking at the daily on this, you’ll see that this is the recent ascending support trend line that we have. And we also have the moving averages that are grouped somewhat in close proximity. And then this pivot down below that falls at $61.40, because of the fact that this was a former gap, right? Former gap entry here, and the price action came back to retest that and held, and then ran to new relative highs over here. So nice little window that we were focusing on, on BBY to see if we could get this trendline to break, and then continue down towards this. And then if that broke, you really started opening up into a nice window below that.

All right, so back to the five minute. What I wanted to see on this was a move away from that 200-day, and as we started pulling away from that, I wanted to get short as we broke the trend line, and try to get the move started down to at least at $61.40 pivot, all right? So looking at a fast timeframe, we’ll just walk through exactly what we had there for the entry. Now this stock definitely was a little bit difficult to get started. It had some really wild volatile price action, kind of spready and inconsistent, and that always makes it a little bit more difficult to get a trade started, especially with a little bit of size to make a nice trade.

But anyway, we saw this hard move down, got below the trendline line once, bounced, then we started to get below a second time. We started to get a couple of retests here, and this is where I got short, right around $64, and we started to sell right away. So short $64, as we started to confirm below the trend line, and got this move here, covered some $63.40, $63.30s, more through $63, more at $62.70s. And as we started to get this little bit of a double bottom in through here, and start to round back out, I covered the rest as we were coming back to $63.

So I essentially got a point out of it. I didn’t have really that much size on it because I was a little bit leery of the price action, and also the fact that the spy was against us. I’m always a little bit more conservative when I have a spy against me. It’s not in my favor, or sounded my direction, the same direction of the trade that I’m taking because it definitely will weigh on the stock, and it’s not going to have that … as much momentum as it would if the market was in your favor, all right? So that’s a trade I took on BBY. Again pretty quick, but just because we had nice confirmation below a major trend line, and we had a little bit of room to move, I get the trade started in this point, and then ended up continue to run, it would’ve been a really nice continuation to the day. So. But again still a nice way to to wrap up the morning there. A quick $3K on a short sided trade for BBY. All right, so that was BBY.

I want to talk about one other one that we watched. I didn’t trade this one, but it actually ended up working out pretty well. Now OLLI, a big gap down on this, 25% gap down. Usually those are a little … or ones that I’m a little bit more cautious on, because they already have such a big move. We had a big zone of support in through here, but the windows between the support were okay. They were definitely levels that I could see that were tradable. But if you look at the daily on this, you’ll see where those levels come from. The first most major level is this macro ascending support line, which is really important. It basically starts from the beginning of time of the stock, and we get a bunch of interactions on this line over in through here, extend that out, and that’s basically where we are today. Now another kind of interesting point of price action here that took place, that created a pivot were these two candle days here. Hang on one second.

At the volume, there we go. So we have these two candles here that sold, popped, sold, popped, creating this pivot point in through $54.60, all right? So that was a big pivot on the stock, and when you go over to the current point in time, we had this big zone of support in through here. And you can see we reacted off that level again, all right? So that’s why it’s important to notice what price action is doing in the past, to make sure you’re clear on what’s occurring or what you can expect to occur now. So I was just … I was really waiting for this to break down below $54.60, and open up. But then once we got out of the open, the price action looked really good, and the volume looks really good, and there was definitely some trades on this as you can see, all right?

Right out of the open you get the quick sell, retest, fail. That would be your entry, right? If you were trading this, you’re looking back to study charts, this would be your entry. You get the first sell down, you come back to make the relief move and you fail, all right? Once you fail, that’s your entry short. So entry short, somewhere around $57.50s, get a quick move to $56, and then from there you just continue all the way down through $54.50s on that pivot, and then you make that big reversal move all the way back to the upside, all right? But good, decent tradable windows here, you can see it respected them very nicely, all sides of it, very tradable if you were fast, really great volume to work with as well. So a lot of good moves today, actually.

ANF ended up working out pretty nicely once it failed the opening pop, all right? ANF, once it failed the opening pop here, and got back below $15, right? Failed $15, retest, fail. All right, you’re in at $15, you get a really nice move here all the way down to a $14.20, which is a huge move for a $14-$15 stock. So plenty of potential on that one even, all right? So it was good to see some action today. You know, we’re coming into a Friday, which is also going to be a holiday weekend. We’ve got … Monday is Labor Day, so I can do expect the action to be somewhat slower, people traveling for the holiday. But anyway, that’s today’s trade guys. A nice hit on BBY, and we’ll look to get back at it first thing tomorrow morning.

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