Updating on 1/23
I’ve been trying to take into account equities when taking trades — I have noticed a correlation, but at the same time, I trade mostly price action and do my best to stay open to what the market makes available to me. Overall, equities have been pushing down for quite some time, though there’s been some rallying since last October. The rally appeared to end at the end of December, but there’s been some strength since the beginning of the year.
Price reached some resistance, and could’ve pushed back down — continuing the larger down-trend, so I actually was largely looking at shorts on this day; but, trying to remain open, I also had some Long’s on my list. CMCSA was one of the longs, and here’s what I had written up before I set my entry order:
Mid-October last year, this bottomed out and has been pushing up since then. At the beginning of the year/month, price made a move up to some resistance, based, then pushed up again. Over the last 2 days, though, this has pulled back a bit, and is sitting at the highs of the base it had formed. This looks to me like a retest before it pushes back to the upside, so I think I’m going to look for entries — either above today’s high or above the base that was created a week ago — on the hourly chart. The hourly chart is showing a steady move down, but I’m also seeing that stall at the recent support area. It’s not a perfect pattern, but it’s clearly retesting, so I put an entry order on the move back up
I set an entry order on the hourly chart, and monitored to make sure it didn’t move drastically in the opposite direction. It was rather slow moving, and it wicked through my stop a couple of times, but eventually, pushed up enough to trigger me in to the trade. It made a nice rally near the end of the day, but dropped back to near my entry by the end of the day.
Entry – $38.10
Target – $39.00
Stop – $37.80
R:R – 3
Entry – $38.11
I had flashbacks to the LVS trade that gapped down and stopped me out for a much larger loss than I wanted, but I had to remind myself that A) That’s trading B) That was one trade in this strategy and does not constitute an issue with the strategy at all and C) There’s as much likelihood that a gap could work for me, instead of against me, so I calmed myself down and just waited for the next day. The next day (Friday) there was a bit of a down-move at the open, but from there, price just pushed up and up and up. I moved my stop to break-even when I could, but the SAR was moving slowly on the hourly chart, so I left it there for a while.
Exit – $39.42
By midday, I started considering the fact that it was Friday, and I didn’t really want to hold my position over the weekend. I got more aggressive with my stop, moving it along the SAR on the 15 min. chart, sometimes moving it above the SAR to the next support area. This was strong all day, though, and never pulled back. Eventually, with 2 minutes left until the close for the week, I just sent a market order to get out. That market order ended up being near the high for the day, too, and I got out with a beautiful $1.31/share profit!
