A Trade A Day

ANET is another example of an extreme with opportunity.

What we’re seeing is 4 down days in a row.After a nice climb, the stock has hit hard times. It’s gapped down and its downward spiral has not abated. So where’s the opportunity? Well, there are no guarantees, but what I would like to see is tomorrow’s session open above today’s close and continue higher. If you really want to put the screws to ANET, we can hope the stock gaps above yesterday’s high and move higher. A gap over yesterday’s high would technically be an OOPS trade, as sellers yell “OOPS!” and hit their buy button to cover their shorts. I think “Oh Shit” would have been a better name for the formation.

Anyway, like I said, no guarantees this is going to pan out, but it’s just one of many formations that gives you that added edge in trading.

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AMZN released their quarterly earnings today. The stocks is currently trading up over 20% from today’s close. Many times I felt that pang of envy in my stomach from not catching it. That’s a huge gain in one day to miss out.

But, as I aways say, there’s opportunity in extremes. Look, the stock is going to do one of three things tomorrow. It’s going to continue up, move lower, or stay flat. No duh, right?

Well, the good thing is we know that AMZN has the attention of the investing public. Up or down, the move should be sharp. That will make for a more profitable day trade.

Let’s look at an example. FTEK had the same sort of action.

It will take flexibility on your part to trade AMZN tomorrow, but if you can trade what AMZN gives you, there is money to be made.

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Tonight’s trade comes courtesy of WNG:

If I had to pick a problem with this formation it would be the timing. We’re in the end stages of a bull market. I am hesitant to establish new long trades, so I’m treating this as a short term swing trade.

I like the fact that it is the first pause after a long consolidation for the stock. We’ll see what the stock can do over 85.50/86.00.

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Nice ascending triangle forming in LIFC.

I like the fact that this is the third touch of the top trendline. If it doesn’t break out in the next couple of sessions, I’d look else where.

Also BA is working out very nicely.

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Today’s trade is a bit of a slow mover, but the cup with handle BA is carving out is impeccable.

My target is based on the move from the bottom of the cup to the top of the handle. Honestly, I will wait and see what the price action dictates.

The Lean Hogs trades is totally invalid now. Price has completely reversed direction.

The Euro trade is still going well. I’m anticipating a bit of a retracement. I may add some if it comes back to support. I’ll keep you posted.

CBD has setup in a big way. I wish there was more volume on the breakout though. Hopefully we’ll get a high volume confirmation day in two or three days.

See you tomorrow!

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