01/03/11: Day Trading Review

Important contextual note: Haven't day traded on Lightspeed for about a month or been used to watching level 2 so today was just a day to get back into the saddle & finish positive for the day. 


Analysis: The market gapped up and provided some excellent strong trends in the stocks I was in but unfortunately my anxiousness and lack of confidence caused me to miss the BIG ones in REE, AAPL & MCP. LVS was a scratch trade where I lost about .03¢ net in 3 quick trades.


Things to work on: 


1. Trades to hold on strong trending In Play stocks & trending markets
2. At least 5 days of solid gains to increase tier size
3. Keep ROI on winners positive & try to get a 3/1 RR & gradually work up to the ideal 5/1 RR goal. Today's was 2.13
4.  Try to stick with a small basket of In Play stocks & focus
5. Try to keep winning percentage greater than 50% and increase to 65% target. Today was 71% win rate 


Trades below (minus LVS scratch trade):


REE

MCP

AAPL

Finnies are setting up (setup, swing)

This could be a good week for the financials. 


GS, AIG & BLK look like best in breed. 


The conventionals also have nice setup but not expecting a BIG move in front of earnings season.


GS (bot weeklies on Friday)

AIG

BLK

BAC

JPM

WFC

C

MA

V

AXP

Momo leaders (analysis)

Here's a look at some of the momo leaders while commodities (fiat currency devaluation), energy (especially oil) & ag's look hot while some tech namely cloud & internet looking a little weak & tired. 

Casinos staged a strong Friday move. 

A lot of financial names appear to be setting up for higher moves (GS, JPM, AIG, WFC, BAC, C, BLK, MS, etc..). 

Watch for sector rotation and a possible run into Alcoa's earnings (AA) next Monday 01/10/11 which kicks off earnings season.

AAPL (tech, retail)

AMZN (tech, online retail)

BIDU (tech, China internet)

  CRM (tech, cloud)

FFIV (tech, cloud)

GLD (commodity)

 GS (financial)

 GOOG (tech, internet)

LVS (casino)

OIH (oil, service)

PCLN (tech, online travel service)

 NFLX (online streaming movies & DVD rental)

SLV (commodity)

WLT (oil, service)

 WYNN (Casino)

Ag's are on fire (sector strength, analysis)

Will be watching this sector to see if we see money start rotating out and start looking at a short bias. *MOS reports on 01/04/11, should see some sector movement. Looking to enter in a MON Jan/Feb Calendar put spread.


CF

POT

AGCO

AGU

MOS

MON 

LULU (swing, setup)

after the explosive run-up, has seen an orderly down channel pullback closing in on 20MA, RSI has steeply worked off overbot conditions (49.17), bearish MACD cross & overbot levels in the market has me cautious so if I do take trade will have small size

Trigger alert: 68 (sup bounce) or 70.5 (B/O of down channel)

Stop (max): 67.5 (sup bounce) 69.5 (B/O of down channel)

Target: 70 (sup bounce)+ 80 (B/O of down channel)

RR: +3

Daily

30 min

URI (swing, setup)

Stalking this rental/leasing service name, bullish volume pattern in the last months, 20MA acting as solid support, high short float (20%+, 7.45 days to cover), stoch turning up, RSI neither overbot or oversold


Possible entry: 22.8-23
Stop: 22 max (probably tighter)
Target: 25+
R/R: 2.75'ish




Daily chart

Weekly chart