Stock Selection Information
- EMC increases the size of its buyback program to $6B (authorized over three years to December 2015) and says it plans to repurchase $3.5B worth of common stock by the end of FQ2 2014. The company also initiates a quarterly dividend of $0.10/share and says it plans to alter its capital structure to include more debt while still "maintaining a strong investment-grade profile." (PR)
Pre-Market Volume - 10%
Trading Plan - To go long above 24.25 -
Management
Entry Setup used: big seller stepping lower
Trading Comments
Tape reading was the key here. The initial plan was to go long on the stock, but at the open there was a huge seller on the box, offering 1.500.000 shares at 25.05. So I opened a short position in front of him. It did not take long for the trade to develop. At the 24.75 level some buying took place so I closed the position. The initial plan was to just take profits on a 100 shares at this level and hold a core, but I messed up execution. When it spiked up the plan was to add, but since I had closed the position I short it again. When the 24.75 level dropped again, I planned to add to position, but my offer did not get taken. Close it when it stop moving down.
On the way up the 24.92 level was holding prices, but market was moving up and the sellers were not strong to hold prices down. When the bids lift to 24.93 a long position was opened for a scalp, expecting the 25.05 to defend the level, but he was not there anymore.
When it got to the pre-market highs sellers came back I tried a short position but got stopped out on the spike up. Too bad, cause prices drop after that.
On the way up the 24.92 level was holding prices, but market was moving up and the sellers were not strong to hold prices down. When the bids lift to 24.93 a long position was opened for a scalp, expecting the 25.05 to defend the level, but he was not there anymore.
When it got to the pre-market highs sellers came back I tried a short position but got stopped out on the spike up. Too bad, cause prices drop after that.
Evaluation
My first mistake was to close the position at the 24.75 level. That was not my plan, but I hit the wrong button when executing the trade. I manage to get back in, but failed to add when my offer did not get taken and prices dropped.
Also on the way up, the long position was strong and I should´ve held it when I saw that the seller was not at the 25.05 add to the position.
At the pre-market high i should´ve shorted it again at the 25.23 level. Too bad I did not.
Even with these mistakes, I had the trade under control at all times and it was a very profitable one.
Also on the way up, the long position was strong and I should´ve held it when I saw that the seller was not at the 25.05 add to the position.
At the pre-market high i should´ve shorted it again at the 25.23 level. Too bad I did not.
Even with these mistakes, I had the trade under control at all times and it was a very profitable one.
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