VRSN still giving us 7%-10% a day

[Naz]

Well i think we must start a thread on this stock which more and more people in the States seem to be following.Why? because these swings that we are getting are giving daytraders our daily bread.
Mean and moody! you bet.Testing?Oh yes.Exciting? i think so.

So lets recap.Verisign(VRSN)Nasdaq 100 stock.Bags of liquidity.
It has been in a trading range for 2 weeks from $43 to $36 occassionaly stoping at $38.Why does it have this strong resistance at $43?Well it could be that the Fibonacci 62% retracement of the last move down is at this level.

If anyone wants to paper trade this stock it can be viewed for free at www.bigcharts.com. The great thing about the stock is that its not a bombed out cheapie but trading at $43 it still has room to move both up and down giving ample scope for more profits.

You can see how i traded it yesterday in the post "Diary of a daytrader"My overnight position and stop are also posted.Yes i know daytraders arent supposed to hold overnight.Bend the rules sometimes.

Now come on you UK traders try your hand at this stock,use your technical analysis and paper trade this,giving your reasons.It will give you a chance to look at how a US stock behaves.If you do trade it will you hold it overnight?if so why.What price are you looking to go long and short and why?

If i get no replies i'll do the updates myself.Good Luck!

 

[ChartMan]

VRSN TA is quite sweet. 3 Tops at 43$ and two bottoms at 37$. Should be a simple swing trade, in at 41.80$ target out 37.25, STOP at 42.20.
The logic is this: The close is at 42.44 ish... If it's going down, catch it below the $ mark and miss the fake out. The stop should be just above the $, in case you get caught on the entry and the market reverses. Sell at just above the bottom. You could sell half at 40.20, being minor resistance, and (maybe) go in again at 39.80 the fall from there being clear to 37.00
Let's see what happens, and if you concur with this.
Attached VRSN 10 min chart

 

[Naz]

Chartman youre an absolute gem thanks for your post i'm sure it'll help everyone.

I,m actualy short for real in this stock at $42.20 with a stop at 43.35(see diary of a daytrader)My reasons were this, the stock hit $43 intraday and just couldn't do it again.If it gaps down on the open i'll take half the profits,move my stop to break even and try and run the rest to near $40.If it takes out my stop at $43.35 i will close the position and scale into a long position with a stop near the $43 level giving me a 35c risk and see if i can play the break out.I have no opinions on this, i'll play it the way it runs.I felt that it was worth taking the short as it was at a high in the consolidation you show so well.There was also the slight advantage that bad overnight news might have affected the market and also the major trend of this stock was down.

OK THIS IS WHAT HAPPENED.

I run two accounts(as i mentioned yesterday in another post) so i,m short VRSN in one with an Automatic stop at $43.35 for a guranteed loss of $1.15.
On the open the Nas Comp makes a strong run for 1500 and VRSN is incredibly strong on the level 2 screen so i go long at $42.80 in the second account.The short gets covered automaticly in the first account for a loss of $1.15.
I personaly thought VRSN was going to run for another $3,but on the second time of crossing $44 i tightened the stop and to my suprise got stopped out giving a profit of $1.20 on the trade.
Net profit 5c over both accounts.
I watched it for a long time but never felt comfortable about getting in again for a swing because of the Fed cut.Never mind tommorow is another day.

 

[ChartMan]

BTW NAZ, do you come into our chat rooms? I haven't seen your nickname there....

 

[Naz]

I'm not in the chat rooms at the moment but i may give it a try sometime in the future

 

[Naz]

VRSN 11% PROFIT TODAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

VRSN was beautiful to play today(Weds oct 3rd) I bought the first pullback at $41.50.This was shown not only very well on the intraday graphs but also on the level 2 screen.Ater positive figures released at 10am EST, the market was steaming all day.My tactics were simple.On a big up day forget the wiggles and jiggles.Dont look at the position all day and sell on the close ,which was approx $46.Big up days nearly always finish at the high of the day.

Now up 19 1/2 % this week on VRSN, in just 3 days.It would take you over 3 years to get this in your building society.

 

[Naz]

VRSN still at it again on thurs.It is showing remarkable support and resistance at whole and 1/2 numbers this can easily be seen on the level 2 screen.So still wanting to buy pullbacks in the up trend i bought the first real higher low of the day which was at a round number $47.It hit resistance pulled back as expected to $47.5.I moved my stop underneath the low and we sailed thru the round number to $49.I used my level 2 screen to take the perfect exit and take out $2 profit.

I'm a bit edgy because we will always get profit taking at decade numbers.I wait for the pullback,buy in again and take $1/2.I play the same trick again and take another $1/2.I miss the run up to $50 but i'm poised to short it when it gets there.No such luck and they drive it down 20c from the top and its the high of the day.No suprise at all.I sit the rest of the day out because $50 is such an important level.Still its made $3 today thats approx 6 1/2%.

Total profits this week 26%

 

[flea]

Question for Naz

Sounds like fun Naz. From reading your post about your day i wondered where you do your trading, as it sounds as though you go into the city to do it rather than from home. Keep the posts coming i always find them informative and entertaining

 

[Naz]

The final post for this stock was posted on the web site under the heading"Why trade2win is a winner".It was posted BEFORE the US markets opened and advised that we should step aside and not trade it on friday as it lacked direction.so the total profits on the week are 26%.Every move was planned and nothing was a shot in the dark.I only hope you were as successful this week as we were on this thread.Thank you for looking in and good luck with your trading.