Warrior Trading Blog

Thursdays are for Thousands! +$4K | Mike’s Trade Recap


Hey, what’s up guys? Well, another great day of trading here on AMD. Really paying the bills this week on one single stock. I took a trade on AMD for just over 3500. We took another trade on CIEN for a quick 500 bucks. The trade didn’t end up resolving the way we liked, so we stopped very quickly. But it still puts us up over 4000 on the day. So, let’s take a few minutes here and break down these awesome trades from this morning’s session.

All right, good morning guys. We’re ending today nicely in the green pretty quickly here. The first 15 minutes of the day had two really nice trades, relatively short in length, more of a scalp if you will. I’m definitely not a scalp trader, but there was some good momentum and volume right out of the open here on a few names that we took advantage of. And I traded two stocks today which is very rare. Usually I’m just on one, but we had been following this AMD for several days, waiting for it to get above 30 bucks and attempted to do it yesterday, but it couldn’t hold the level, but today it was gapping back above and as soon as the market opened this thing ripped on volume and I got in virtually right away with a pretty decent position, about 5000 shares. And I held it and let that thing run nicely and then I sold it for a really nice win for 3500.

And then CIEN I tried a long on this as it was coming out of the gates once it reversed after the initial sell and got a decent pop on it right away, but I set my stop pretty tight because I was concerned that it was going to pull back hard. I got stopped out and still was able to lock up just over 500. But we’re over 4K for the day, which is great. It’s starting to shape up to be a nice week here with one day left of trading. So let’s take a minute and break down what we saw here this morning.

First off, CIEN. Now, obviously I don’t trade to the long side that often, but if the set up presents itself and it has a good look to it then I will definitely consider it. We see this type of situation all the time, we get a little bit of wash out move, it reclaims then it squeezes everyone who tried to get short initially. These actually move pretty well, especially if there is a nice set up to it and CIEN definitely had that. So if you look at the daily here, you can see a pretty nice trend line that it had broken, well established trend line, broke up through that, broke up through all the moving averages, broke up through the last pivot. The only thing in its way here was the recent high, which is up here at 4560. So we’re starting to get close to that, but big pocket, there’s a big pocket in here that I was focusing on, which was right in through this area. So basically above that 4076 all the way up to 4560. So, pretty nice pocket to work with. The volume came in on this, there was definitely some good potential, especially if the market wanted to at least hold the gap higher out of the open, which it did definitely do.

So, what happened at the open was I was watching this for a quick pull back to view at the hold and then round back out. What happened is it sold through V-Web kind of quickly, but we did come back and retest this major pivot in the market that was at 4076, that recent swing high. Once that held we started to move back up through V-Web. I looked right here, I’ll show you on the fast time frame where I got it, but what happened was quick sell off, we bounced right back, we held. Now what happens here is that most of the traders who got short trying to turn this thing over, now that it’s coming back up to retrace this quickly, they’re bailing on the position, so a little bit of a squeeze here. These types of set ups work all the time, especially when there’s a good technical set up to it, so I took it as we were kind of pushing through 43, got a quick spike up to 4340’s and 50’s. I sold half right away. I bought 3000 shares and sold half right away. A decent profit there. I held it, but it came back to dip below 43. I had a tight stop set. Probably a little too tight, but the way this thing was moving around I didn’t want it to go back against me and I was looking for this to really continue quickly.

Again, stopped a little early on this, no question about it. After it did consolidate it broke again and made another nice move, but I like to trade these quick reversals here. Once they fail to one direction because typically the other side of the trade is getting squeezed and you can take advantage of that momentum. Plus we were breaking up into this big window. So, good looking set up here, still moving, still moving nicely, almost to the other side of the window, so nice job those of you who were able to hold it or trade it again here later into the morning. So, decent trade there, a few bucks in a matter of a few seconds, so we’ll take it, lock it up, it all adds up to the bottom line.

Next one was AMD. Again, I’ve been talking about this one for several days, holding above this 30 dollar mark here is big and once you get into the window, again, you can see this is the spot we were working with and through here, that’s what I wanted to see AMD get up in there and see if we can continue hard and fast into this window. We got above it today right out of the open. We ripped through it on heavy volume and I hit the buy key several times when I saw the type of volume that was coming in and just held onto it. All right, so what I did was, for the fast time frame, show you what I looked at for an entry. So, right out of the open I saw AMD push through the 30 dollar mark and really good volume. I wanted to wait for some sort of pull back, some sort of consolidation. I just wanted to see it just a tiny bit for me to know that it’s going to hold and that it’s not going to sell back through.

Once I saw this happen right here, this little bit of a rest pause scenario, it started to resolve back higher and I got long. 5000 shares, bought it, mark it, and it moved right away. So just through 3020’s is where I got long and I sold it up through this 3080’s and 90’s, so I held the whole position because I really thought this thing could move really nicely and my target was 50 cents, but once it started blowing through 3070, I said well, jeez, we got room on this, so I’m going to hold it and see if the momentum can continue and get us through 31 and then as we hit 3090, I saw some struggle going on and I just sold the position. So, really, really good trade on this. I was trying to really manage two trades at once, so it was a little bit difficult. That’s why I ended up holding on to the whole block rather than scaling out as I normally would, but on the other hand I probably would’ve bought more shares if I was just focusing on this specifically.

So, it all worked out in the end. We were able to lock up a nice profit on it, some really good action on this today. Multiple trade opportunities on this. If you’re aggressive on these days you can really turn some nice wins. So, AMD definitely a good trader when it has volume and a good technical setup. And when those present themselves you’ve really got to be aggressive because those are the days that you can lock up some nice profit. So, good trade on AMD and CIEN, both to the long side surprisingly, but when the action is there you’ve got to take advantage. So, good job to everyone that was able to catch these moves today. It’s been a little bit choppy the last two or three days, but the action definitely showed up today and we were able to get a nice win.

So, we’ll look to wrap up the week strong. Back at it first thing tomorrow morning.

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