Yesterday was my best trading day for 2010…all thanks to SOMX. I caught the first spike for a good +$5K and the secondary breakout for another +$13K. SOMX could have been played by anyone that was alert and had the intra-day 1-min chart up. The first spike may have been elusive to 99% of people, but the secondary breakout is no excuse because you had every opportunity to buy the stock on the first spike out of it’s base, then it’s reach to the spike’s high, and beyond.
SOMX got halted prior to 12PM for reasons of news pending. It was also announced that the stock would re-open at 12:05PM. Normally, one does not have the luxury of being able to be ready for the spike. Like NUVA and my various AIG trades, the first 1-min spike bar held up and sustained itself. This first spike automatically broke above 4.80 (Nov 2009) and 4.88 (March 2010), alerting of a full-scale technical breakout. The secondary breakout was marked by a break from the neutral range as well as another breakout above $8.
This is another example of a trade where you either caught it or you didn’t. There is no in-between. If you were fast and on the right side, congrats. If you were slow and/or on the wrong side, there are lessons to be learned from the SOMX trade. Whenever the first spike holds up and immediately breaks through the nearest major resistance, it is a long trade. If it fails to penetrate major resistance, it will fade, for a short entry. Upon breaking out, it is a signal of further momentum, giving opportunities to scale-out of the position.
Looking back this year, I noticed that I had at least one intra-day spike play once every 1-2 weeks. I do miss some of them, but you only need one of these plays to make your day, week, or month. After a huge win, it is my standard protocol to take it easy the next day (t0day) and play with only 1/2 size positions and cut down on frequency. People say that you shouldn’t trade with emotions, but since we’re human, emotions are inevitable. After huge wins and losses, always remember to take a break, refresh, and then get back into the game.
Some charts with levels marked below. As each target is reached, you have to pull back to a longer time frame to find the next target. It is 4AM and I need some rest. Have a good one folks.
Earlie screenshots from the day and stuf f;:
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first spike trade was actually closer to $7K, not $5k and secondary breakout trade was closer to $12k, not $13k.
FWIW, based on the screen shot of your order entry, the first trade netted approx $5,800.
thank you, you’re right. i was out all day, then back at 2am trying to do math
How many shares were you going in with at a time? Were you slamming it with market orders on the buys and using limits for sales? Did you hold through some of the chop — 20c pull-backs?
Also did you have any stop losses in place? Nice work BTW.
no stops. no hard stops at leasts
thnx for the detailed charts, what a beautiful trade on flat day to.
Good to relax and celebrate with a few chicken squawks 😉
One hell of a play.
Best post in the history of the internet
Nice going on this John. Was watching you from the side. I expected it to tank, went short and got killed. You are quick on the trigger, man!
is it good idea to buy SOMX today?
Bought $PALM 4.64
out $PALM 4.63
Short $AIG 34.12
Oil is dipping pretty good today. SCO giving me a good ride.
Did you go with a bigger position size on the second B/O? Whats the reasoning?
Cov $AIG 34.02
May I ask how did $SOMX caught your eyes yesterday?
Bought $JAZZ 13.30/3299
Sold $JAZZ 13.36, unsure yet
leo – you can either get a good news feeder (I have heard that Fidelity is good for the news feed)
or keep a list of stocks that you know have news that has to come out eventually-needs research
TIVO should have been on alert in everyone’s account because the court had to make a decision
NUVA was different because their good news was just out of the blue – this is where a news feeder helps
Thanks, I thought CA used some sort of real time scan with his own TA criteria (vol, price, …)
I think you need Telechart if you want to do customized scanning.
My interactive brokers account has some scans but I dont find them much use
Phenomenal trade on SOMX! You keep getting better, John. Its great to see, I’m glad for you.
sweet trade and good advice on the step back after the trade to cool off
Bought $WSM 25.2499/2699/2799/28
Sold 1/2 $WSM 25.71
Sold 1/4 $WSM 25.91
Sold last 1/4 $WSM 26.09
Bought small $WSM 26.32
Sold half $WSM 26.58
Sold other 1/2 $WSM 26.55
CA, i notice from the screen shots of your orders that you traded approx 75k on the WSM trade, about 5x more than the SOMX morning trade. Can you comment on how you made your position sizing decisions?
Bought $PRGO 54.4599
Sold half $PRGO 54.87/89
Bought $ISSI 9.0399
Sold $ISSI 9.02
Sold 1/4 $PRGO 54.99
Sold final 1/4 $PRGO 54.67
Bought $PRGO 55.1599/17, has more room
Sold $PRGO 55.23/25
AEN trying to b/o