I got back from vacation not really in the mood to trade. May has been profitable, but nothing like last month. I’ve been distracted for much of the month and it has showed in my trading.

Before I get to the trades, let me suggest that you listen to Tim’s interview with Trader-X. X is someone I’ve learned a lot from and his blog is first on my reading list at the end of the day.

Also, I was disappointed to see that Esto decided to stop blogging. I certainly respect his decision to stop, but I will certainly miss his posts!!

Yesterday seemed like an average day. After the first 30 minutes of trading there was only one breakout play I was able to take (CMC, breakeven) and nothing else seemed even remotely setting up to trade. At 10AM, I ran my gap scan and found a reasonable number of gaps to watch.

I ended up trading WNG against the fifth 15 minute bar. It turned out to be my most profitable daytrade to date in terms of dollars! When I posted it to Jaiku shortly after taking the trade, Richard pointed out that WNG was a takeover candidate at 80, which I didn’t realize.

Trader-X always says that there is something magical about Fibonacci numbers and there are trades like these where I’d have to agree. I had taken profit and was trying to ride out the remaining half of my position with what I thought was a loose stop - not loose enough, though! I was stopped out by 5 cents during the 2PM bar. It wasn’t even in my thought process that WNG might hit the Fib extension, but it sure did.

Here’s the chart.

Here is another setup that I didn’t trade, but would have worked out although it wouldn’t have hit the Fib extension. I was turned off by the action in the second and third bar.

Related Posts: