Morgan Stanley broke the neckline of a H&S Top in the early going this morning.
"Sell and/or sell short breaks of support. Also, sell and/or sell short retests of broken support."
After the breakdown, Morgan rallied back for a retest of the broken neckline where I entered my order to short it at 17.94, just below the breakdown. Scottrade finally let me short something, which I feel I deserve after they refused THREE times to allow me to short the TRIPLE H&S Top in Goldman last week! LOL. Made a little better than $1,300 on the trade.
4 comments:
nice one, Melf!
maybe time to look into another broker? I really like TOS, but they sold the company to TD Ameritrade, so I will have to see how they are after they complete the merger.
Thanks, Greg,
Maybe Scottrade is lightening up about shorting, eh? I like them a lot, as far as executions. They flash on your screen in about a nanosecond. Trades are $7.
I also have an account at TDAmeritrade. They're "okay," but I don't like them nearly as well. Trades are $9.95.
Prior to this recent episode, I haven't had any trouble shorting at Scottrade, but I have had a lot of problems at TDAmeritrade.
We'll see how it goes after the merger is completed, huh?
Melf,
How do you go about identifying potential trades? Do you use a screen and then review the charts or do you simply have a repetoire of stocks that you always follow?
Mark,
I don't have a screen or any particular method for identifying trades. When I flip through my charts, I look for patterns like the ones we've discussed in the Goldman and Morgan Stanley charts. If there are multiple or "nested" patterns, I particularly like those, so I'll try to follow those more closely.
Often, when there is news on a stock, I'll take a quick look at the chart to see if there's anything actionable, like the quick short trade that I posted in POT. It gapped down on news, then rallied into DOUBLE resistance. I shorted it AT resistance.
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