Tuesday, June 5, 2012

Tuesday evening thread

Gator needs a break.....

The S&P spent the later part of the session battling the resistance at 129 .  Though it did not close at session highs, SPY did regain its 200dma.


Tuesday Afternoon

WTR Daily Chart (11:45AM)
The stock hit a 52 week high yesterday and improved on that today.  It's a bit extended here and I would not chase it but if it pulls back to 23 or just below to test the breakout that could be a good entry.  The stop would be just below the 10 day sma and if it bounces from that area I would fill the position quickly.

Since this is Tuesday Afternoon ..... http://tinyurl.com/73lh5m3

Tuesday Morning

AMZN Daily Chart
Amazon bounced from the 50 day simple moving average on Friday and even though it closed near the bottom of the trading range I bought June 210 calls late in the day for 6.00.  My plan was to hold them over the weekend and sell if the stock traded back below the 50 day which was 207.55.

AMZN 5 Minute Chart
When the market opened the stock printed a strong green candle on heavy volume and things looked good.  That didn't last long as it then started to pull back a bit and when it printed the 2nd red candle I got nervous and prepared my sell order.  The ellipse (also the 3rd red candle) is where I made my sale at 9:49 for 5.20 per contract.  A loss of .80.  The stock had not yet traded below the 50 day but I decided to save what I could as it looked inevitable.  I was right.  By 10:05 it had traded down to 207 on its way to 206.37 which it hit about 10:08.  The calls were trading at 4.40 so I felt ok about my sale.

That's when I made my mistake.  I quit watching and the next thing I knew it had snapped back on good volume and by 10:15 it was above where I sold it.  Had I been paying attention I could have bought it back on the bounce and had a very respectable 50% gain as the calls traded to 9.00 by 2:30 and closed at 8.50.  Instead I had a 13% loss.  Grrrrrrrrrrrr!!!!!!