This is one of those charts that just looks like it's going to "fall of its own weight." Scottrade only had 2,356 shares available to short, so I went with that and shorted MS at 22.55. It fell to 22.02, bounced, and came back down again. I covered at 22.04 figuring that it might briefly double-bottom and give me a chance to re-short it at a higher price. It fell right through 22.02 and went down to 21.16, so I didn't get the chance. MS recovered to 21.96 at the close. Gain: $1,200.
QCOM had a "Gap To Crap," or, "Gap And Crap" at the open, on news that lawsuits with BRCM might get resolved, and news that QCOM will reports earnings on Monday that meet or exceed expections. QCOM sold off from the open, went red, and looked ready to take Wednesday's late afternoon low of 33.97 (horizontal red line), where I shorted it. That was a late entry, so I only gave it a twenty cent stop, at 40.17.
When a stock reverses like QCOM did, it can have an ugly day. I was wanting a selloff into the end of the day, down toward the neckline of what appears to be a H&S Top. I didn't get it, and got stopped out. Loss: $500.
The QLD looked like it was going to mount a late day rally. I got long, with a stop below 31.25, which looked to be the low of a Right Shoulder of a Bullish Inverse H&S pattern. Shortly after I got long, the QLD sold off. I didn't like that action and all, and didn't wait for the 31.25 to get busted, figuring it might go down hard in fast market conditions. I sold at 31.27. Loss: $1,000.
It turned out that I had the right idea, but it still cost me $1,000.
The pattern "morphed" (changed) into this Bullish Inverse H&S (pattern in white), or Ascending Triangle (pattern in red) and did stage the late day rally. Curses!
Loss on the day: $300.
2 comments:
Tough day. I find it demoralizing when I get the story correct but blow the actual trade. Did you realize the morphed pattern during trading hours and choose not to play or was that an after hours discovery?
Mark,
Yes, it's a pain in the neck to "get it right," basically, and then lose money on the deal :(
I saw the QLD break out going into the close, but didn't want to get long and hold it overnight in case it was an upside fakeout breakout. If I had gotten a good entry at lower prices, I would have considered it.
Post a Comment