Interesting Charts for Technical Trades

[Dinerotrader 10]

OCNF (freightliner transport)

I am pretty leary about this one. I have made money several times on it before based on trading from support which is why I still watch it but the bankruptcy risk on this is ever present like most of the big ocean transporters. I am a little worried to hold this overnight.

 

[Dinerotrader 10]

RAIL

 

Quick fundamental info.

It is a railroad. Warren Buffet just bought a railroad recently citing that as the economy grows so will the transport business (not that everything he does is the right thing). This railroad and also the one he bought and both transport a lot of coal.

 

The support level was holding well and I liked the fundamentals for a long term hold. Stop loss would be below the support line. I bought this one with real IRA money.

 

 

Quick update on RAIL. I actually bought this one at support when I posted the chart. I don't buy stock very often right now since I am focusing most of my time on SIM trading futures. I'm up 4.3% right now so I am happy thus far.

 

[Dinerotrader 10]

MBI

 

This was a $65 stock before the 2008 collapse. They have some lawsuits going on right now which worry me but based on pure chart reading. There seems to be a low risk entry entry point at support in expectation of a reversal to the upside.

 

[Dinerotrader 10]

S

Sprint...

 

I'd be looking for a short on this one. The big ol' doji caught my eye from today's price action along with how close it is to resistance. I noted a few other hammers/doji's that appeared in the past and provided reasonable moves.

 

[Dinerotrader 10]

TLAB

 

I could see shorting a breakout through support or buying a reversal here. We are in a down trend but price doesn't seem to want to let in to that longer term level.

 

[sep34 10]

Just for the heck of it....

 

support was at 6.00 and it didnt hold(notice the longshadows that formed trying to hold 6.00).

6.00 is now Resistance and there is another R between 6.00 and 6.25. If I buyt here which I wouldnt, I would keep and eye on 6.00 and a little above that because thats seller will come in again.

A turn at 5.00 may be in the cards.

 

Also that recent top looks very majore, but i would have to see more of the left edge.

[Dinerotrader 10]

Just for the heck of it....

 

support was at 6.00 and it didnt hold(notice the longshadows that formed trying to hold 6.00).

6.00 is now Resistance and there is another R between 6.00 and 6.25. If I buyt here which I wouldnt, I would keep and eye on 6.00 and a little above that because thats seller will come in again.

A turn at 5.00 may be in the cards.

 

Also that recent top looks very majore, but i would have to see more of the left edge.

 

I assume you are referring to the TLAB chart. 6 was definitely a level and I should have marked it. In my opinion it didn't provide a great trading entry setup because it just chopped around that level but the level it is at right now is showing some great tight action just above showing me that it is significant right now in investor's eyes. In June when it had this same tight action it ended up reversing. I can see both a long and a short with tight stops providing some good risk reward trades.

[sep34 10]

Hi Dinortrader,

 

Yes regarding TALB(FYI not at al familiar with this stock, but a chart is a chart)

 

I looked at that chart for at most 5min....because I was in a rush to meet someone.

Had I had more time I would have added, dont take anything I mentioned too seriously, becuase it was at a glance analysis.

 

Infact at second look I would say, even if we broke below your S and price reached 5.00.

I would not be interested in buying, but thats my prefernece.

 

The S you are showing is good solid S (I would have drawn it a little higher but thts not a big deal) the problem that I see is that buyers will have two very near R to push through(the range of apprx. a little below 6.00-6.25) and that would not give me enough wiggle room, thus those type of trades.... although they can be sucessful, I prefer to let them go. Just my prefernce from experience and how much I like to get as my min profit per trade.

 

Now back to your chart I see that big dark candle just barely kissed your S, that big candle should have punched trough the S but it didnt even my S being slightly higher the big dark candle was not able to close below it. There is still no confirmation to take the long trade for me, thus even if i wanted to be long I would need to wait for a confirmation.

A few things can happen , regardless if I get a confirmation,

price a starts to move up.

Price gaps below the S.

Price starts to contract creating small candle lines and then another Big dark candle slices right through the S and moves down to fill that gap around 5.25 and possibly testing 5.00.

That gap is infact another reason I dont want to be long. at the moment.

 

Different views are what make the markets, dont take my wrtting as direct disagreement.

Keep on posting.... For me when I have the time, which is rare, its always fun to do this type of analysis.

[brownsfan019 17]

Dinero - nice charts and nice trade on the one you are in. I think you'll find just doing some chart analysis, even on daily stock charts, will help your futures trading. You might also find that it's easier on stocks and go that direction. You never know where trading will take you. I went from stocks to options to futures.

[sep34 10]

On the TLAB chart, on previous page last post by Dineortrader, posted I could not see enough of the left edge so i decided to undertake the hard task of opening anew chart and typing TLAB...

 

The key levels on the charts are the locations that I would monitor.

obviously, when I looked at more of the left edge the landscape changed.

Edited December 10, 2009 by sep34

[Dinerotrader 10]

The S you are showing is good solid S (I would have drawn it a little higher but thts not a big deal) the problem that I see is that buyers will have two very near R to push through(the range of apprx. a little below 6.00-6.25) and that would not give me enough wiggle room, thus those type of trades.... although they can be sucessful, I prefer to let them go. Just my prefernce from experience and how much I like to get as my min profit per trade.

 

I totally agree with this. You have to be picky about which trades to take and this might not provide the best R:R compared to some other opportunities. I scan through a lot of stocks so the ones I post hear I have only looked at for 40-60 seconds to note S/R, consider candles, trendlines, and price action. When my sons aren't so young I will be teaching them to do this type of scanning for me so I can just consider the cream of the crop for possible trades.

[Dinerotrader 10]

Dinero - nice charts and nice trade on the one you are in. I think you'll find just doing some chart analysis, even on daily stock charts, will help your futures trading. You might also find that it's easier on stocks and go that direction. You never know where trading will take you. I went from stocks to options to futures.

 

Stocks can be fun but for intraday trades I find selecting which stocks to make trades on very distracting when all I want to focus on is reading price action and finding great entry points. Futures help me to just focus on that and it has really helped my analytical skills and PA awareness. Thales is great at stock selection and gave me a lot of help but I am still learning. So far I really like futures and most days it feels like I am getting better at it.

[sep34 10]

By the way, I took a few minuts and went through the 4 pages and peeked at all the charts. post #27 has to be my favorit chart (RAIL), probably because its the easiest chart for me to understand.

[DugDug 10]

Hi Dinero, as a side note

have you read "blink" Malcom Gladwell - its an interesting book - but the point of mentioning it is sometimes - when you have expertise or experience in something, then just by flicking through a lot of charts and pulling out the ones that your intuition rates highly can work very well. Its the old story of not trying to think to hard and over analyse things.

Myself and a partner used to flick through over 100 charts and pull the ones that looked good - it worked. Problem is now I want to be a little more process driven. :crap:

[crabbydog 10]

Problem is now I want to be a little more process driven.

 

Why? Don't fix if it aint broke I say,

[DugDug 10]

why fix it? Age - stubbornness - boredom.

(this is more a trading physc thread)

There was a great quote - i think it was from Jesse Livermore - that went something like.....

"not taking a loss does more damage to the soul than to the pocketbook"

 

I kind of apply this to myself in that when trading completely on feel I tended to get ill disciplined, and gave back chunks of money usually after big wins. Then I used to mutter to myself like some mad man - hrumpf , moth f...k, idiot, stinking market etc; etc;

I started to loose friends, girlfriends and the like.

 

By introducing an element of discipline and trying to flatten/smooth the pl etc I enjoy myself more by not being too harsh on myself. This should make for a longer trading and more scalable trading career.

 

People talk about burnout in trading - I think to a certain extent its more about boredom - which then leads to excessive risk taking, stupid decisions, and low risk trades while trying to capture the thrill of being right. So by adding more of an element of process driven decisions it takes some of that emotional element out of it.

 

(just kidding about the loosing friends)

[Dinerotrader 10]

OCNF (freightliner transport)

I am pretty leary about this one. I have made money several times on it before based on trading from support which is why I still watch it but the bankruptcy risk on this is ever present like most of the big ocean transporters. I am a little worried to hold this overnight.

 

I decided to pull the trigger on OCNF and buy in at 1.02 with a stop loss at 0.97. I liked that its support is near the $1 level which gives it a little more umph to keep price above $1 just because of the average investor psychology.

 

[SunTrader 10]

I'd keep a short leash on OCNF, obviously psch levels can work against once broken.

 

Although I strickly trade futures these days your thread piqued my interest, especially because TLAB used to a favorite of mine back in the late 90's ($60/$70 a share days ) but I think it looks good here.

 

An Elliott Wave ABC correction looks to be complete sitting on long term 50% retracement level among others and a TD Buy Sequential too - although this could possibly recycle.

[Dinerotrader 10]

I'd keep a short leash on OCNF, obviously psch levels can work against once broken.

 

Although I strickly trade futures these days your thread piqued my interest, especially because TLAB used to a favorite of mine back in the late 90's ($60/$70 a share days ) but I think it looks good here.

 

An Elliott Wave ABC correction looks to be complete sitting on long term 50% retracement level among others and a TD Buy Sequential too - although this could possibly recycle.

 

I don't day trade stocks anymore because I am focused on futures also but I still have some money in IRA, ROTH, and such that needs some management and once the futures I watch die down in the afternoon, I like to relax with some daily stock chart scanning. It also gives me something to talk about with other people that invest but don't know anything about futures. Most people can discuss stocks. Hopefully, this thread will lead me to a trading strategy for my longer term position stock trades.

[Dinerotrader 10]

ARP

 

I am almost positive I will buying this one on Monday. Great bounce off support, nice big hammer candle at support a few days ago and I like the fundamentals. I'll definitely have a stop in in case it starts to break below support.

 

[Dinerotrader 10]

MCO

I like this one to watch. It appears momentum might be turning to the upside.

 

 

[Dinerotrader 10]

GME

 

Reasonable upside potential for the risk. Stop at ~$20.5

 

[thalestrader 14]

Hi Dinero,

 

I'll join your penny stock parade. I'm not initiating any new longs right now given the current market action, but, if the markets intentions were clearly to continue up, this is what I would be looking for: SRLS has established a nice, orderly uptrend over several months, and it is now puling back after getting to within 34 pennies of its all time high according to the data I have on Telecharts. I like this little pullback to 3.50, so I would be looking to buy if Friday's high is bttered by at least a dime, and my stop loss would be a penny below Friday's low. I'd be watchful at the 4.50 level (all time high $4.54), but my intention would be to hold this for a few bags if it pushed tonew all time highs.

 

Best Wishes,

 

Thales

[Dinerotrader 10]

Hi Dinero,

 

I'll join your penny stock parade. I'm not initiating any new longs right now given the current market action, but, if the markets intentions were clearly to continue up, this is what I would be looking for: SRLS has established a nice, orderly uptrend over several months, and it is now puling back after getting to within 34 pennies of its all time high according to the data I have on Telecharts. I like this little pullback to 3.50, so I would be looking to buy if Friday's high is bttered by at least a dime, and my stop loss would be a penny below Friday's low. I'd be watchful at the 4.50 level (all time high $4.54), but my intention would be to hold this for a few bags if it pushed tonew all time highs.

 

Penny stock parade!

Okay I guess I do like the looks of quite a few cheapies but I haven't posted anything that was cheaper than a $1. Interesting that you chose SRLS. I actually did some tax strategy work for them 3 years ago. I'll keep an eye on this one. Thanks for the chart.

 

I agree, market direction is pretty hazy right now which is why I am mostly in cash looking for interesting setups.

 

I'll try to get some more large cap stocks in the mix. Feel free to throw some in also.

[Dinerotrader 10]

KTII

 

Here is where I would like a breakout to play. We'll see what we get.