Trade Review - $OMER
I wrote in a previous blog that one of the keys to consistently making money in the market over the long haul is being able to quickly adapt to the current market. You can read that post here. I basically talked about how you must figure out what's working in the current market and focus on that. Then once you find something that is working, put your foot on the gas for those trades and put the brakes on everything else.
Last weekend I went through the $CARA trade. We were starting to see a lot of these types of set-ups so I thought I would walk through one. Well, this week we saw a bunch more. Let's take a brief look at a few of them:
Here's LL, a clean break through $36.50. We talk about whole number Inflection Points all the time but the $.25, $.50 and $.75 can be equally as powerful, especially on higher priced stocks. There was a $.50 seller on the tape too.
Here's $TWLO back over $34. As you can see on the 2s chart, it hit $34 three times early. There was a clear seller at $34 on the tape. This one didn't have a lot of follow through but quickly moved over $.70. I'm a Day Trader, I'll take a $.70 move in my favor in less than 10 minutes anytime. ALWAYS protecting my entry when it comes back down and there's no support. This time there was $34 bid support on the tape for a while that kept us in the trade a bit longer.
Here's ACHN over $5.00. The high it reached was $5.66. Again we're Day Traders, that's an awesome move in under 15 minutes. You don't get that kind of rate of return on your $$$ sitting in a bank! Guess what? There was a $5 seller on the tape too. The early high was $4.99 but I wanted to wait for the seller to get taken out.
Here's CARA (again). I thought it could get moving over $15. Didn't work this time. They don't all work! Nothing works ALL THE TIME. I lost about $80 on this trade. I'll take an $80 loss on an A+ Set-Up anytime. I'll take this trade next time I see it too. In fact, I missed it on Friday. That's what we must do as Day Traders. Take EVERY trade that sets-up and is meeting all of our parameters. We don't know the outcome of any trade we are entering so we play the probabilities:
Finally, here's OMER. I captured the trade on video so you can see Level2 along with the chart and how it played out in real time. Click the image and let's take a look, but please come back to this page to read the rest of the blog when the video is over. One thing I forgot to mention in the video about "why" I was so interested in OMER in the first place as a sleeper play - over 20% short interest:
One quick note for those of you who aren't in Mike's chat room. Every single one of these trades was called out over the mic well before they triggered. Heck, OMER we talked about for about 10 minutes before it triggered. We don't just yell "I'm in $XYZ at $10" and then hope you chase. Nor do we say we like stock $XYZ at $10 and then start loading up at $9.91. If I say I like stock $XYZ over $10, I'm going to buy when I see the $10 sellers getting taken out. Or if I say I like $OMER when the $23 seller is getting taken out, that's when I get in:
I want to emphasize something again here. The point of this blog isn't "look at me and what I did this week". It's to show you that this works and it's working well right now. This is my focus. These are the set-ups I'm looking for daily. I titled last week's blog "Next Time..." as I'm trying to get YOU to find and take these trades. Are you bought into Inflection Points yet? This is what Day Trading is all about. It's about finding a repeatable set-up that work for you and pushing the buy button every time you see it. Over and over and over... And when it's really working, push your foot on the gas ALL the way down to the floor. You have to take advantage of the opportunities when they are presented to you. Why? Next week the market may give you nothing and your foot isn't on either the brake or the gas. You're just coasting in neutral... Friday I took ZERO trades in the regular session. ZERO. Why? I missed a couple of early trades and then the market gave me nothing. It was stingy the rest of the morning. It didn't give me a single A+ Set-Up that I look for. Zilch! So, I took the afternoon off. Good thing I took all of these trades and then some earlier in the week.
One more thing before we go: We're hosting another FREE webinar this Thursday (August 17th) at 7:30pm EST. If you enjoy my blogs, why not come hang out with us? We love talking about Day Trading and will answer any/all questions you have. Just click the image below to register!
I hope you enjoyed this blog and video. Please let me know your thoughts. There's a comment section right below.
Thanks for reading and watching!