Wednesday, October 8, 2003
Issue Contents:
| 04:00 | Well? Wonders never cease. |
| 09:10 | Swing Trade of the Day This is today's stock swing trade setup. |
| 09:55 | Swing Trade of the Day Our swing trade alert has gone off. |
| 10:21 | Election 2004 First there was Arnie... |
| 15:41 | Swing Trade of the Day The is our last update of the day. |
| 16:16 | 2003-10-08 Transcript for Real Time Trading Group Real time forum discussion transcript: 2003-10-08 Transcript for Real Time Trading Group |
Today is the day. We will be on the lookout today for earnings from Costco, Genetech and Yahoo!, among the most notable. Elsewhere on the U.S. Economic Calendar, it's pretty light.
It's official! We can now call him the Terminator Governor. Arnie is set to preside over the fifth largest economy in the world.
We've been waiting a few days for RIMM to set up. Yesterday ended with a doji being made, signalling indecision/pause in a parabolic move up. Monday and Tuesday's candlesticks add up to form a Harami pattern. ADX is extreme for this symbol and timeframe, and therefore, any reversal might set up an excellent one or two-day swing trade on the short side.
Calculations:
- Sell short alert price: $43.32, Tuesday's low.
- 5-day Average Bar Length: $1.82
- Two-day low = $42.32
- Target 1 = $42.32 Two-day low.
- Target 2 = $41.50 One ABL move from alert.
- Idea Strike Price for Put = $43.32 + $1.82 = $45.14
Execution:
IF $43.32 is hit in today's trading, THEN we will wait a few minutes for the smoke to clear, and purchase October 45 PUTS. Our stop loss will be placed at $45.00.
The alert to enter RIMM on the short side has gone off. We would like to see the intraday head and shoulders pattern break the neckline soon. This presents more aggressive traders with a tighter stop loss, because IF the neckline does not break, THEN it may morph into a trading range or even a triangle that eventually resolves upward.
The right shoulder is in the $44.34 area, and if you want to tighten your stop loss, the place to move it would be to just UNDER that number.
And now there's Condi. Another cue that campaigning has started. From the Washington Post:
Iraq Shake-up Skipped Rumsfeld
Defense Secretary Donald H. Rumsfeld said yesterday that he was not told in advance about a reorganization of the Iraq reconstruction, which he heads. He said he still does not know the reason for the shake-up.
Rumsfeld said in an interview with the Financial Times and three European news organizations that he did not learn of the new Iraq Stabilization Group until he received a classified memo about it from national security adviser Condoleezza Rice on Thursday.
Rumsfeld was asked several times why the changes were necessary. "I think you have to ask Condi that question," he said, according to a transcript posted on the Web site of the Financial Times.
Pressed, he said: "I said I don't know. Isn't that clear? You don't understand English? I was not there for the backgrounding."
The intraday head and shoulders did not break, and it's drawing out further, morphing into a triangular congestion area. Yahoo is set to announce earnings after the close, and this event may be a catalyst that either jams the market up OR triggers a wave of selling.
Since we are attempting to cherry pick a potential spike top on the RIMM daily chart, we do have the option of bailing out before the close, because it did not break the neckline. It's up to you, since whenever we come to an event such a the release of earnings or economic data, the ensuing whipsaw can and does cut both ways. No guts, no glory, as they say...
2003-10-08 Transcript for Real Time Trading Group
Real time forum discussion transcript: 2003-10-08 Transcript for Real Time Trading Group
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