Intra-day Action
Belter of a day for the bulls in terms of the numbers. Very strong internals all day after good housing numbers and feelings about economy resulting from that. Options expiration too for a bit more volatility about. Of a list of 361 stocks on my watchlist, only 27 are in the red, with only 11 of those at a loss greater than 1%. Perhaps the most interesting thing of the day is C above $4.50. You have to be bullish with a close above this level with no real overhead until $6.50.
On the stats end of things from yesterday, we have more interesting numbers:
Stats from Thursday Aug. 21st
Heavy declines in advance decline volume, wondering if this signals a short term change in direction (up). MON is the only stock to have had 4 days of decreasing downward volume.
On the technical side of things, most of the stocks I mentioned yesterday have performed well over the past 2 sessions. It is nice when good economic news ties in well to key technical levels – this could have gone the other way quite easily. It is not just technical analysis that a trader has to be good at, and the past few days have shown that. In particular KB, CAKE, DOW, DIS, SPG and ITUB look excellent on the dailies.
I traded DAL at $6.80 yesterday and closed out this morning. I cashed at $6.94 because I wasn’t at my computer when the market opened, and having heard oil was at year highs with the Bernanke announcement pending – it was a safe play.
DAL entry and exit
DAL is currently trading at $7.08. I am now on a 4 trade winning streak with 6 of the last 9 being profitable. There has been a real turnaround in my performance the past 2 weeks as I continue to learn about internals, relative strength, timing and luck. I have also reduced my account drawdown by 450% in the past month (which has stemmed from an error in a trade entry/limit order in DRI earlier in the year).
Right now I’m watching ITUB at $18.80 for a 1-2-3 at support. DIS is testing a triple top on the daily at the moment on nice recent volume, any bull flag type pullback from here would be a seriously implied long.
