iBankCoin
Joined Nov 29, 2008
329 Blog Posts

Doji Inside Day for Short Entry / Materials + Industrials Focus

Imperial Grey Knight Terminators fighting the Chaos forces of Khorne at the tainted Basilica of St. Mariel


I expect a doji inside day today. The locations of these inside days are important on every major index. For the SPX, I expect the range to be around the 900 level (50-day/200-day) continuously. For the DJIA, I expect it to be around 8377-8550, or between the 50-day and 200-day MA’s. The COMP’s range should be around the 1775+ level. The RUT’s range should sit above the 50-day MA at 494+.


Intraday, a rising wedge would be ideal and a break of the wedge would be an entry point for shorts. I am focusing on the materials and industrials to make up the majority of the campaign. If you are looking at dollar stocks to short, stop. Short positions should be higher priced.

Looking at each of the sectors (XLV, XLB, XLK, XLI, XLY, XLP, XLF, XLE, XLU), the materials, industrials, consumer discretionary, financials, and energy are leading the decline, therefore, using the SPX as the leading index.








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80 comments

  1. Ferrari321

    Any specific subsectors that you are looking at within materials / industrials?

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  2. Treepart

    That XLY chart looks like he just ate a plate of bad clams.

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  3. retox

    887.75 ES buy @ close hit PT of 992 last night for a +4.25 trade while I slept off the Mai Tais.

    Total ES yesterday +8.75.

    100% cash – taking the morning off.

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  4. Trader

    Hey Retox, do you primarily use pattern formations on the ES to trade? What time-frame do you use? I’ve tried to use the longer time-frames but get shaken out easily.

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  5. Mike

    MTL up above my alert in premarket

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  6. Bay Area Dude

    Although the focus seems to be SHORTING. ALVR is bank today! Up 15% Pre

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  7. Mike

    In MTL @ 8.14

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  8. finclyde

    CA, is there a reason why you don’t use iETF’s for shorting?

    What do you think of QMM?

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  9. sergeifreud

    TSTR 1.68

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  10. Doctor Sparks

    biotech; CYTR in at .85 came up on my screen, waiting on SGMO

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  11. retox

    sorry – I meant to say 892 PT on the last post (not used to the 8 handle yet).

    Trader,

    I use 1 minute charts and will often look at 1 hour and 1 day charts for S/R and larger patterns that are not as obvious on the 1 minute.

    I really trade a bastard mix of chart patterns (#1 most important), support & resistance levels (especially useful as a pattern develops into S/R as a few have over the last couple of days), and volume (frantic “me-too” buying or panic selling to help sense the end of a move).

    I entered the buy at the close, for example, with a falling wedge, overdone slight panic selling, close at a fresh low on the day… It had “little bounce” written all over it.

    Honestly, I don’t know how I ever traded anything before I learned basic chart patterns.

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  12. The Chart Addict

    I prefer individual names cause I can actively manage all of them and I know what stocks to pick. ETFs simply do what the market does and if someone sucks at stockpicking, it’s the better alternative. I do use ETFs as hedging vehicles, if I need them.

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  13. retox

    GILT – I wish I was trading today – it needs volume though.

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  14. Doctor Sparks

    SGMO at 4.46 – close leash on these puppies, 80% cash

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  15. gimme some gas

    bought EOG at 66.66

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  16. retox

    Prob not today but PPHM on watch for a break

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  17. retox

    Picked up a lotto ticket – MEXP .20 – LONG TERM holding. Will continue to average in if/when it drops. Story stock.

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  18. masterpain

    APPL GOING ROTTEN

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  19. Doctor Sparks

    Ok, got a little more time.

    I like SGMO (long term hold) for the science – controlling existing genes by turning them on and off, extremely slick. Probably should’ve waited for better volume or it to crack the 200d, but these are only half positions.

    CYTR came up on my screen, science / market looks good, and I bought when it went back over the 200d. However it’s a volatile beast.

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  20. Pati

    CA, please look at KOG?

    You are a profit-making machine!!! Thank you for all your assistance.

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  21. Trader

    Thanks Retox. Yeah, I’ve flirted with complex indicators that other blogs tout, but I’ve never been successful with them. It was refreshing to find CA and learn his methodology of keeping it simple and trading basic chart patterns.

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  22. Mike

    Out of MTL at 8.38 (+4% ehhh)

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  23. The Chart Addict

    STOCK + TIME FRAME

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  24. Cash-N-Guns

    shorting the piss out of Insurance companies.(LNC)..not only cause they are fucked..but also because they are such overall scumbags..so its a dual win situation..!

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  25. Toronto Canuck

    Thinking about shorting CF. What are your thoughts on the daily?

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  26. pdf

    whats w/ all the gay kiddie pictures of robots and conan homo erotic art?

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  27. The Chart Addict

    If you hold for several days, I think it’s fine. Account for some churning at the 100-day MA.

    Insurance is a sector /w good setups.

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  28. retox

    BDK short continues to work – nobody is buying little yellow drills.

    Trader,

    I’ve never seen anybody make much money on an indicator (except the people selling them). I do keep a stochastic up but I find I use it very little.

    CA method – simple, reliable, repeatable method. It’s just a good thing that most traders don’t like simplicity or the edge would be traded out by now.

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  29. Toronto Canuck

    Shorted CF @ 70.75.
    Agrium’s offer has been rejected and there is a strong downward pressure on commodity stocks at the moment.

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  30. PissAnt

    Toronto: I gotta take the other side on CF. Next $3 are up, not down.

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  31. The Chart Addict

    I’m thinking…

    It may be a too soon too add swing shorts. I’m guessing it’ll take more than 1-2 days to setup. So, day trade for now.

    I am hoping for a rising wedge today, or some part of one.

    And, everything depends on EOD.

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  32. Cash-N-Guns

    anticipating a meek rally to add to financial shorts, long some TBT for this week.

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  33. Cash-N-Guns

    Bob Piss-on-me…cant fucking speak..he is babbling like a drunk co-ed with a dick in her ass…fucking twit. Sharp rally coming..to suck back in all the bull-penney-cramer-tards.

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  34. Slim

    Is this a yahoo message board?

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  35. Kel

    Keep in mind the Fed meeting as well. Depending on how the market reacts to their statement we could see a sharp move in either direction.

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  36. The Chart Addict

    Right 2:15PM tomorrow.

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  37. PissAnt

    Just keep in mine one interesting stat i’ve researched:

    The last 16 Fed meetings, 14 of those times the market has moved in the opposite direction the next day from the initial 2:15-4pm post fed decision. The average move of that next day is 2.23%. So expect a chop and don’t get too one-sided.

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  38. Cash-N-Guns

    FRPT- suggested long.

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  39. KC

    Day trade today ERX/ERY

    ERY in the morning, in 24.12, out 24.64,
    accidentally in ERY again during the dip, wanted ERX, 24.48, out 24.54 (if i waited 5 minutes, coulda be out at 24.72)

    ERX in right now 26.75, expecting 28 or more

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  40. TraderKeith

    SIGA looks like a good swing trade, nice bounce off the trendline

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  41. The Chart Addict

    This rally must continue higher.

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  42. sergeifreud

    AGEN?

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  43. Trader

    CA, if this rally fails and breaks to a new low, let’s say on average volume, and does not setup the way you’d like, is the prudent thing to do a) wait until it does setup properly or b) short because the market is showing continued weakness?

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  44. The Chart Addict

    Can short, then cover for a day trade, or wait a few days for swing short setup. Both are fine and depends on your style.

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  45. Mike

    This market is far too quiet for my liking

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  46. Juice

    The Fed meets tomorrow, Q end is coming up … the bulls may gather some mo for a little rally. Best to be patient/selective right here with the shorties.

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  47. retox

    WES – from the short screen yesterday. Forming a WTF pattern 5 min chart.

    http://finviz.com/screener.ashx?v=210&t=WES,ATMI,CHBT,CA,UFCS,LEN

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  48. retox

    BDK on 5 minute looks ready for another dip (@ 27.37)

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  49. KC

    stopped out ERX 27.74, RIENG head and houlder with neckline broken, now in ERY 23.74

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  50. PissAnt

    KC you’re trying to momentum trade a doji day. You’re going to get burned chasing each direction. You’re certainly going to find a way to lose money.

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  51. Slim

    MEDX at 8.29

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  52. Grouche

    Cash-n-guns: How’s that LNC short doing for you? You sure are quiet today. I bet you fucking got pasted and took a kick in the ass on that short position.

    You fuckers, just dont understand that you are chasing on your short positions. Great the stocks are up today, but they are down 20-30% already you buffoons.

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  53. retox

    WES looking ugly 5 min

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  54. The Chart Addict

    What have I been doing all day? Nothing. I made zero trades today.

    I am sitting here trying to figure out the market as I am still unsure of my next move. I am still in 100% cash.

    The market is currently triangulating intra-day.

    I will know soon though.

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  55. Bay Area Dude

    STAR strong upward momentum. Just watching it for now.

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  56. Bay Area Dude

    STAR has a pretty large short position- guess they’re running. Would like to see a test of support @ 24ish.

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  57. TraderKeith

    S&P looks to have held the 888 23% fib retracement level yeah?

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  58. PolarPanda

    Hi CA,

    I am with you. Lots of people want to jump in front of trains to pick up nickels. Lol.

    OT – Did your trip to mexico give you the idea to pick up your lizard? Pretty cool pet.

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  59. shawnk3

    TBT should take off after the Treasury auction right?

    In theory, higher supply (without increased demand) leads to lower prices……and $104 Billion in treasuries being auctioned off is a lot of increased supply.

    Am I missing anything?

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  60. The Chart Addict

    No. The little guy was a random purchase that proved to be a great decision.

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  61. Bay Area Dude

    If it weren’t for the respect that I have for some of the guys here, and you especially CA, I would be jumping into STAR now as it makes a new high. Sitting in 100% cash.

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  62. hantek

    I’m watching STAR for any signs of weakness. Been playing that for a few months and it’s one of a few remaining longs. As for chasing shorts, there was a lot of technical damage done yesterday, so I’m suspect of bulls finding the courage to show strength here, given how ugly so many charts appear. My shorts include SYMC, COF, DEL and PVA. Watching LEN.

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  63. PissAnt

    Bought 15% SSO @ 24.80, plan on adding another 15% by the close. Expecting a bounce off that 23.6% Fib level we hit this AM. This is a one day trade, will be out before Fed meeting. Expect maybe a $.80-$1 move in SSO

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  64. Cash-N-Guns

    lizards arent pets…if it doesnt know its name…its not a pet…just a creature…a dog is a fucking pet.

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  65. Cash-N-Guns

    ELN…get some..or dont..fuck you.

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  66. PissAnt

    Bought 2nd half SSO @ 24.86

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  67. Jothar

    CA, where do u get all these awesome pics from?

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  68. The Chart Addict

    warhammer 40k

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  69. The Chart Addict

    100% cash

    0%

    The time is near.

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  70. Mike

    That’s not a picture, that’s a market carpet of his picks. Yes. He’s that good.

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  71. The Chart Addict

    Well, it wasn’t an inside day, but was a doji. Close enough.

    My pictures are depictions of what happens when people bet against me.

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  72. retox

    fucktard day.

    Only 1 trade – bought MEXP @ .20 for a long term lotto. No stop and will add on weakness.

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  73. The Chart Addict

    retox – I always see the trade #’s, but not the entries or exits.

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  74. retox

    CA,

    Fair enough – I’ll add that to the charts. Until now, I’ve just printed the daily charts, written out the details by hand, and kept them in a binder. Archaic method yes.

    I never intended to post any of this until Hammy asked if this type of trading actually works so I just started posting the buys and sells live and throwing up the chart at the end of the day with little thought to the method.

    Let me think about the best way to organize this to make it easier to follow.

    Thanks again!

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  75. $1 Trannie

    I LUV YRCW, not! Trannies rule!

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  76. $1 Trannie

    J.B. Cunt & AMR, ooh, my pussy hurts!

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  77. The Chart Addict

    okie dokie

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  78. The Chart Addict

    retox – I’m not saying you have to do it. Do whatever is comfortable.

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