Registered User
Joined: 10/7/2004
Posts: 2,181
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I'm not particularly eager to spend the time, so believe me, you will not hurt my feelings if there is little or no response to this but there seems to be some interest of late so let me know and I will discuss the way I am trading STEC (or any other from my latest list).
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Registered User
Joined: 7/1/2008
Posts: 889
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BBX!
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Registered User
Joined: 8/8/2007
Posts: 42
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Tobydad,
I really appreciate the watch list you posted in early December. I've tried to set up my indicators as you've set them up and understand your selection and entry point on these stocks.
STEC was the only stock I purchased using criteria I've been using, getting in at about $14.60. I'm holding it now.
I'd like to hear your thoughts.
Mike
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Registered User
Joined: 2/19/2008
Posts: 193
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TD,
I am in STEC and was in and out once before. Don't particularly like the action today so I'm wondering about setting stops. Would love to hear how you are trading it. I really appreciate your teachings and the energy you are putting into this. My trading is much more successful because of your gifts. Many others benefit as well.
Thank you,
Jean
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Registered User
Joined: 10/7/2004
Posts: 2,181
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OK, we start with BBX: interesting that there was a volume spike on 12/10 followed by a day that went above the 12/10 HOD; interesting because this broke through a resistance trendline drawn from the high of 9/09 to the high of 10/06.
But the real trigger day was 1/07: high volume, candle passing through the ubb20 supported by the LR30, TSV26 above 0. Stop becomes 1.24 because the most recent low of 1.25 is flanked by lows that are higher than it.
Again, the overall setup is a very powerful one, a close outside of and below the lbb20 in late Oct. Show of strength early Nov and mid Dec. If one is willing to take a little more risk, you buy these when they touch down on the lbb20.
As the price climbs, we watch for the candle piercing the LR30, .01 below that low becomes a new stop loss. Or the 1-2-3 pattern of lows that occurred on 1/13, 1/14, and 1/15 signals a new stop loss. So as of today's close, we move the low to 1.49; .01 below the low of 1/14 (because the low of 1/14 is lower than the day before and the day after).
Now we wait to see if it's ready to climb higher.
This is the longer term TD approach.
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Registered User
Joined: 2/19/2008
Posts: 193
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I'm getting this. Adding the trendline was helpful. If I had been in this I would have likely gotten out on 1/11 and Does it make sense to go in once there is a higher low and to continue to put in buys .01 abov HOD?
How do you play it. Do you move in and out of these?
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Jean;
Depending on market conditions, I usually have some positions that I hold until the market tells me to get out...well, the market and a system. But in all but the very best market conditions, I usually have some that I get in and out of quickly (in other words, sell into strength), and some that I hold.
Playing STEC: 12/11 was the culmination of a perfect set up; close outside of the lbb20, priced did not drop while the lbb20 did, price supported by lbb20, lr30 and tsv26 driving up hard through the lbb13 and ubb13. The action on 12/14 confirmed by going .01 over the high of 12/11. So 12/14 becomes the buy in day.
12/22 was a doji completely detached from the ubb20 and on high volume. As well it was approaching the overhead resistance line drawn from the highs of late Sept to the highs of the first week of Nov. So I tighten the stop to .01 below the high of the previous day.
The low of 12/23 is lower than the low of 12/22 and the low of 12/24, so .01 below the low of 12/23 becomes the new stop.
Stop gets moved up again on 12/31 as a 1-2-3 pattern of lows is confirmed (the low of 12/30 being lower than the lows of both the previous and the following day).
.01 below the low of 1/08/10 becomes the new stop because it pierces the lr30. 1/11, being a higher low confirms that 1/08 is the correct stop.
.01 below 1/12 becomes the new stop as it pierces the lr30. 1/13 confirms it as the stop except that the stop gets moved up the .01 below the low of 1/13 because it is piercing the lr30. Stop gets moved up again at the end of the day 1/14.
1/15 we're out.
Once price starts consistently piercing the lr30, day after day, it's usually time to tighten up the stops and let the price action take you out of the stock.
Probably confusing but, once learned, it's a very tidy system that saves me a lot of stress and requires very little time.
Let me know if there are questions.
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Registered User
Joined: 2/19/2008
Posts: 193
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Excellent, excellent, excellent! I get it. . I got out yesterday too, only I sold at market in the morning. I missed a lot of the rally by selling on 12/23 and getting back in later. Putting the stop .01 below high of the previous day would have solved that. Why did you not do the same on /5 with the spinning top candle or 1/6 when the candle detached from the ubb?
This is really helpful information. I'm sure this will help my trading and help reduce all the stress associated with it.
I'm currious about how you would approach a new entry? Let us know if you see a new entry for this as there appears to be a lot of upside once resistance is overcome.
Thank you so much for your hard work.
Gratefully
Jean
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Registered User
Joined: 10/4/2009
Posts: 66
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i would interested in the list you have. more so the method you used to scan for them. im just getting started in the stockfinder method for scanning for stocks. i have not bought one stock using these scans yet. by the time i find something the opportunity has passed. but the webinar on tuesday pointd out a very good ways to scan for stocks.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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rverm44820; I'm going to suggest that it sounds as if you are a bit new to trading; and, as such, you have a beautiful opportunity to learn the right way. I recommend that you take some time learning when to get out as well as when to get in. Learn money management, risk analysis, portfolio allocation. By learning these, you will find more of the types of trades that suit you. You'll need to know them to be successful anyway so you might as well get on it right away. If your goal is to make money, don't worry, as soon as I have a new list, I post it here. So just go along for the ride and enjoy.
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Registered User
Joined: 12/10/2008
Posts: 3
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tobydad, thanks for you info, Has helped me a lot too.I'm not sure how you determine lbb20 and exactly what it is.Can you explain?thanks,Riggie
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Registered User
Joined: 10/7/2004
Posts: 2,181
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lbb20 = Lower Bollinger Band 20,20 (20 day, width 2.0)
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Registered User
Joined: 10/7/2004
Posts: 2,181
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BBX looking good for the near term.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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BBX, my stop is 1.49
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Registered User
Joined: 10/7/2004
Posts: 2,181
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BBX, in at 1.72, down this morning (of course!) but still supported by LR30 so my stop will move to 1.55 if the candle does not pierce the LR30 by end of day.
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Registered User
Joined: 2/19/2008
Posts: 193
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Looks like Stec may be heading up again to try and fill Decembers gap again. Had some increasing volume today, It is at the old May 08 and Dec 09 break out levels. Seems to fit TD profile and Bens back to break out model.
HPQ had a good report tonight. Maybe that will ignite the tech sector.
By the way Tobydad has a nice explaination of setting stops in this discussion. See post 1/15 and 1/16.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Nice time to be buying this one.
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Registered User
Joined: 10/7/2004
Posts: 2,181
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But watch out for a pullback tomorrow; not sure but I think it's a possibility.
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