Wednesday, August 05, 2009


After that quick almost $3 run , it's prudent to take the profits(right before a new 5 minute candle) but keep a close eye on it for another entry.

AIG
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5 comments:

bluecollartrader said...

Scott, I just found that you were posting today so I'm going back through todays stuff... All these months I've been studying your charts, I thought you were getting out just AFTER the turn. This post indicates just prior. It's hard to tell because of the way the chart looks and where the red or green line crosses. I am now trying to figure out if I am more enlightened or more confused... Ha! :-)

12:07 p.m.
CN said...

Interesting chart here for sure. Scott, can you describe your reason for holding on during this time period after seeing the doji around 12.00? Seeing the lower volume accompanied with that would make me think twice about holding, what kept you in the game then?

2:12 p.m.
Scott said...

CN-One of my first trades in the morning was in at the 10:50 candle after I saw it pop up on my new highs list. i didn't post that and wasn't intending to actually post live trades today but I saw something special about AIG today so I felt compelled to.
So I had been in it and felt the power pushing it up. I grabbed almost $2.50 off it then. Since I couldn't short it I waited to see what was going to happen. After two red candles, green appeared. I wasn't feeling it and so passed. Then a red. Then a green at 11:35 which I bot, and got stopped out. Almost immediately I bot it again and was rocketed up and away by the momo to a near $3 gain. The dojis didn't bother me because the most telling signals came to me by seeing what the markets were doing at the same time. AIG was going up many times when the markets were going down. See the 10:55 and 11:00 candles for example. Now that 11:35 AIG green candle occured when the QQQQ took a big drop down. That reinforced my gut feeling I had earlier that some big buyers are disguising their accumulation. I thought if the markets turn up AIG will positively explode, and it did. After that it was just a matter of knowing that it runs not quite $3 so at the end of a huge candle I exit with profits. I used the same trick a few times.

5:26 p.m.
CN said...

Ok, I see what you're saying. Now that I think about it, the fact that the dojis had such a small range should have indicated more of a consolidation than a reversal. I'm still getting the hang of feeling for the momentum, so often my focus is strictly the volume and price action of the stock. I didn't think that if AIG was holding well while QQQQ was dropping that if QQQQ spiked we could see an explosion on AIG. Really good to know, it's definitely nice to see your thought process during the day on your picks.

8:00 p.m.
bluecollartrader said...

Terrific stuff. Great insight. Thanks CN and Scott.

5:47 a.m.

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