Trading the markets with Alan Rich.

[Spam Man]

Thanks for the suggestion Pitbull, I'll keep it in mind.

Naz's response had nothing to do with "what they teach", by the way, and it still strikes me as strange having read it again. More coffee required perhaps?

 

[PitBull]

It's a long story.....don't go there.
Bramble and Mr Charts. Nuff said

 

[Naz]

Our style of trading is sometimes not what others wish to hear about but it produces results. I decided to put a scanner together that would take the hottest stocks of the day and give alerts at opportune times. Then the trader makes the decision whether to take the trade or not. The fact that the stock is hot means it has a good chance of giving decent profits rather than churning around stopping the trader out.

For example ATHR fitted my criteria as a hot stock yesterday. But when was an opportune live time to look at it? After all there are lots of stocks out there and its impossible to focus on all their twists and turns.

The scanner caught it as the hammer was made with volume indicating a potential intra day reversal. I added my comment as well alerting my web members. The stock then ran $3 or 300 points. How a trader wishes to trade it is then up to them. The fact that its hot gives the potential for a bigger move. I attach a moving average on the chart to show how even the simplest of trading ideas could have taken 200 points from the move.


Alan

 

[rossored]

Just so that everyone who is reading this thread is aware, Alan et al have our permission to post here.

We (T2W) have asked Alan (and others who post on the boards regarding US stocks or similar) to keep the mentions of their respective businesses to a minimum. We appreciate that some comments regarding viatrader and the like are going to pop up from time to time as they are asked by other members, and it is not unreasonable in these instances for Alan or whoever to respond appropriately.

However, I for one will not permit a truly excellent, educational thread to be destroyed by unwarranted flaming, needless heckling, or anything else of the sort. I would expect legitimate questions to be answered appropriately, no matter who they are posted by, but posts that fall outside of this remit will be deleted without explanation.

Any questions please feel free to PM me or one of the other administrators or moderators.

Thanks.

 

[smbtnt]

Swing contenders:

HANS and JOYG have served me well in the past year.

Also currently active in ISRG, RACK, ZOLT, PEIX, SHLD and WYNN.

 

[Mr. Charts]

Just a few from my hot list today:
UARM
LIFC
ZBRA
CAKE

PitBull, thanks again for arranging that night in Chinatown - briliant to see so many familiar faces again and some new ones. Great fun being amongst so many like minded people.
If you arrange the next one in Amsterdam, I'll be there ! In fact anywhere on the planet !
Richard

 

[TheBramble]

Bramble, this is my thread albeit a public one. Your intention is not to get a debate going on hot stocks but just to drive someone away from posting. You've already been banned once. In future i would ask readers to ignore what you say and get on with things because your one aim is to be disruptive. Please dont post here again.

Alan, I'm surprised you've come out guns blazing - and so fiercely. You and I have never had a cross word.

You've made some fairly big assumptions about my intent, which although just possibly justifiable based on what counts as ancient history on these boards, are quite inappropriate now.

I have always enjoyed your posts and especially this latest thread. You take some effort to explain why you're doing what you're doing and the underlying basis of your plan of action. Not all posters take this trouble. My concern was that your thread would be weakened by the appearance of more back-slapping, didn't-I-do-well, here's-a-trade-I-did-earlier type posts without any rationale or basis and which add nothing to the sum of members'knowledge. I was hoping in my response to Richard's post to establish a friendly basis for two-way discussion and knowledge sharing and trading development rather than a flat fait accompli of what he'd achieved..

As for telling me not to post here and for others to ignore me - I consider you're currently enjoying unprecedented privileges in the amount of latitude you are being allowed in relation to advertising your own site ans subscription service, but I don't believe this latitude or privilege extends to you being able to tell me - or others - what they can or cannot do on a public forum - whether you started the thread or not. Rossored has already underlined this rather well in his post above.

If I or anyone else post and ask questions of yours or anyone else's trades who care to post them, including mine, providing they are largely on-topic and within site guidelines you have absolutely no basis for complaint. And nor does anyone else. Of course, you and everyone else can chose to what and how they respond, as always. I don't think anyone expects a free ride, well, few do. But I think it's reasonable to expect discussion on points of the trades described. Otherwise, what precisely would be the point of posting them?

I genuinely hope this thread continues as it started - a professional and open discussion of trading and trades on the NASDAQ specifically. One where novice and experienced traders alike can benefit and participate. If my existence on this thread causes anyone's hackles to rise, it's important to recognise that it's their hackles and based on their past personal issues with me rather than being based on anything I'm posting here, now. Basically - their problem - not mine.

Now, let's put all this silliness behind us and get on with the real business - of trading.

 

[Mr. Charts]

Of the four I mentioned earlier, two chopped around and two produced good moves.
Here is my first trade, CAKE.
The stock had gapped down, as is obvious.
In the first minute it fell, in the early part of the second minute it was all over the show and then stabilised. In the third minute it pushed up but was met with huge selling, (look at the volume bar), most of which was absorbed. That told me - and I could literally see them on level 2 - some market participants were keen buyers. Although that told me it was highly likely to rise, I am very cautious and I really wanted to see others beginning to react correctly; only then would I know with an extremely high probability that it would indeed rise. As the price took out the highs of those first three candles I went long with an average fill of 32.65.
I rarely pick targets as most of the time such points are guess work and I trade on facts, not opinions, not even my own after trading full time for a living since 1999. Opinions have no actual value.
The point of entry is on the cross hairs on the chart. The chart image was taken at the point of exit for a measly 35c profit. I exited because the facts changed. The price had reached the whole number and the momentum, (I read that live - no indicators), died away in front of my eyes with certain market participants changing their positions.
Often in this type of situation the run is for a good $, but not in this case and I believe in acting on facts, nothing else.
Interestingly the one minute candle you can see here at the exit was the high of the day so far and the price is currently way down just above the 32 level.
I hope members find this way of trading of interest.
Richard

 

[Mr. Charts]

.....and the chart

 

[TheBramble]

Of the four I mentioned earlier, two chopped around and two produced good moves.
Here is my first trade, CAKE.
The stock had gapped down, as is obvious.
In the first minute it fell, in the early part of the second minute it was all over the show and then stabilised. In the third minute it pushed up but was met with huge selling, (look at the volume bar), most of which was absorbed. That told me - and I could literally see them on level 2 - some market participants were keen buyers. Although that told me it was highly likely to rise, I am very cautious and I really wanted to see others beginning to react correctly; only then would I know with an extremely high probability that it would indeed rise. As the price took out the highs of those first three candles I went long with an average fill of 32.65.
I rarely pick targets as most of the time such points are guess work and I trade on facts, not opinions, not even my own after trading full time for a living since 1999. Opinions have no actual value.
The point of entry is on the cross hairs on the chart. The chart image was taken at the point of exit for a measly 35c profit. I exited because the facts changed. The price had reached the whole number and the momentum, (I read that live - no indicators), died away in front of my eyes with certain market participants changing their positions.
Often in this type of situation the run is for a good $, but not in this case and I believe in acting on facts, nothing else.
Interestingly the one minute candle you can see here at the exit was the high of the day so far and the price is currently way down just above the 32 level.
I hope members find this way of trading of interest.
Richard

Richard, good description of a trade.

Why do you interpret the heavy volume on the 3rd 1min bar as predominantly selling? The range on the bar was extremely small (relative) and the price action moved up thereafter.

Wouldn't selling volume be associated with falling price?

I've always interpreted this type of action as showing solid support.

 

[Mr. Charts]

I mentioned y'day that I would post the screen shots I took of a RIMM short trade that I did - both the entry image and then the exit image.
Here is the short entry. Later, I'll post the screen shot I took when I covered.
This is the way I scalp. You simply DO NOT need a chart to trade like this. I know that sounds surprising, but it is the way real professionals scalp Nasdaq stocks. Unfortunately the vast majority of people on BBs insist that the chart tells all, somehow or other. The reality is that charts help with some situations, not with others. A time and a place for everything; the right tools for the right jobs.
Richard

PS CAKE is at this moment sitting on whole number LOD support

 

[charliechan]

hello mr c. welcome back!

 

[Mr. Charts]

Thank you, charliechan ;-)
To all the people who have sent emails, I'll reply as soon as possible.
Richard

 

[eurotrader52]

INSP and KLIC earnings out tonight.

Richard, but how much easier would CAKE have been to "nab" with the knowledge that it was going to report earnings last night. INSP and KLIC coming out tonight. Checking out VOLATILE stocks with high Beta rating 3 days to 2 hours (2:00 time zone) before their report (earnings run) would have prepared you for a bigger move on "earnings anticipation" prior to the report. Trading the gap (a strategy which can be a lifetime trading method is lucrative on its own. KLIC for example was a good mover yesterday and continues to provide movement today into its report. UARM already posted days in front of its report made for a good straddle (puts and calls) because it was traded already last quarter. The same is true for ZRAN and JCOM (posted) which I had (options) before it gapped up and and away.

Knowing 'in advance' which stocks are reporting and placing them into your scanner would give you more of the 'meat' of the move.

 

[Mr. Charts]

eurotrader,
I am always aware of who is reporting and when; also consensus expectations and other factors, including initial market reaction on the day.
As in the UK, anticipation of results sometimes causes movement in the last week or two.
Thank you for your excellent positive contributions; they are a pleasure to read.
Richard

 

[chris_ri]

MrCharts,

As I am currently looking around for a level II platform, could you say what you used in the screen shot, it appears to have a few items over and above those I've looked at so far.

Chris

 

[Mr. Charts]

Hello Chris,
It's the esignal level 2 screen. You can also have TotalView, the Island and ARCA books if you prefer to the montage.
If you want further details about it, please feel free to email me and I'll help all I can.
[email protected]
Richard

 

[eurotrader52]

ARRS potential BIG MOVER after tonight's report

ARRS is one I played last quarter and it looks headed for another big move. So far the move is to the upside and its possible to "bet" both sides in a simple straddle. Because the expected move is so large, one of the positions of the straddle should solidly outpace the other. Here is the move after its report on February 9.

ARRS supplies equipment for cable system operators allowing them to deliver a full range of inegrated voice, video and data services to their subscribers.

 

[eurotrader52]

AMKR watch this in after hours

AMKR hit price target of 11 with earnings after hours. Could be a win/win situation if you pick up after PROFIT TAKING. Of course all bets for buying a dip will be off if the stock sells off. Picked up a straddle here as well but not holding the stock through report.

 

[PitBull]

PitBull, thanks again for arranging that night in Chinatown - briliant to see so many familiar faces again and some new ones. Great fun being amongst so many like minded people.
If you arrange the next one in Amsterdam, I'll be there ! In fact anywhere on the planet !
Richard

Hi there Richard, nice to have you back, it's not been the same since.

Yes I must hurry up and arrange a get together. dvdh has been badgering me to get us all over to his side of the world. Have to sort out soon.

My movers today were FISV and GILD.

Regards
Pitbull