Trade Review - RAX - May, 09


Stock Selection Information


Mid-Morning Market Update: Tesla Soars on Earnings as LivePerson Gets Crushed
Morning Market Losers
UPDATE: FBN Securities Downgrades Rackspace to Underperform Following FQ1 Miss, Lower FQ2 Guidance




Watch List Reason - Earning released yesterday after market closed
Pre-Market Volume - 10%
Trading Plan - Strong  support @ 41.00. It fail to hold above this level after testing it, so my plan change to short it.

Management

Entry Setup used: Open range break down

Trading Comments

Stock made a strong move down on earnings and consolidated yesterday. Today during pre-market it consolidates below yesterday´s range. After the open again it consolidated below the pre-market range. So I shorted when I saw a strong seller coming in around 40.25

Evaluation

It was a very well executed trade. I could´ve held it longer, but it was before 10:00 and my target was the projection of the range down for a .50 move. When it hit my target I got out. I was risking .07 cents to make .50. this is a very good risk / reward trade.
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Daily PM Prep - May, 09

** Preparation for Closing Session **

MARKET CONDITIONS


SPY - Market is still in trend up mode and still respecting the 5 minute channel. I do not see it change too much today. Still expect this smaller channel to break down into some profit taking, maybe in the afternoon or tomorrow. This would be healthy to the market. The 161.25 zone should provide support for this move. The only bearish sign is a break down of the longer term channel. There is one scenario that I should have in the back of my mind: strong bullish sign if we break up the longer term channel. Lot´s of volume would be necessary.
Bias: Neutral Bullish
Accuracy: 100%

PM Stock Selection Sheet download - there are some good stocks to trade from in the afternoon.
Updated at 13:30

Want more information about the Stock Selection Sheet?
Legends - Click me
Read this before using the information provided in this page:
1.Educational purpose material only. Use this information at your own risk. 2.Stocks may be added to the selection sheet at any time. They are used as a guide to select which stocks I will trade and set alerts . It does not mean that I follow all of them, that would be crazy.3.The Accuracy information is for my own use only. It is reviewed after I am done trading. This is just a way for me to measure how is my reading of the market and my confidence in it. I suggest you develop your own way to do this.4.The afternoon sheet will be updated between 13:00 and 14:00
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Trader Tools - Trading Journal - Routine

My Trading Routine Sheet is the first journal I will talk about. This is the track of tasks I have to execute during my trading day. What are the tasks that should be in there? All of them. It can not be explained in a more simple way.

One of a trader´s goal is to be consistent and it will be hard to achieve that if you do not repeat the things you did today, tomorrow. By doing the tasks you plan to do, you will be more focused and it is unlikely to forget to do something.

Here are some of the reasons why it helps to have a Routine Sheet:

  • Build confidence - there will be times you will not be confident in yourself. By following your routine it will be easier to regain that confidence. I just came back from a trip with my family a couple days ago. My goal for this week was to just follow my routine and get back in sync with the market. You would be amazed how this simple gesture helps your confidence in trading comes back.
  • Feel prepared for the trading day - after I have completed the tasks I planned for my preparation before the open, I feel ready to trade. If you feel prepared and confident it is more likely that you pull the trigger when you have to get in and out of positions. 
  • Trading feels more like a job - by working at home, you can sometimes feel that trading is not a job. Your mind can play tricks on you, and if you believe it is not a job, your mind will make it true and it will not allow you to be successful at it. With the routine sheet, by the end of the day, with the sheet completed you will have that sensation of "job done", regardless if you were profitable or not.
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Daily AM Prep - May, 09


** Preparation for Morning Session**

MARKET CONDITIONS

World Markets News: Asian markets finished lower today with shares in Japan leading the region.European markets are mixed to lower. It is a holiday in Norway, Switzerland and Indonesia.Interest Rate Decision in Great Britain and Initial Jobless Claims to be released in US before market opens.

Economic Calendar



SPY - Market is still trending up after the range break. It is unlikely that this is a fail break at this point. Market is respecting a channel up in the 5 minute chart that most likely will be broken today. After a couple days up, some profit taking would be healthy. The 161.25 zone (as a confluence of supports) should work as a support for this correction and must watch how market behaves around this area. If we respect the 5 minute channel slow up move may take place. The break of the 60 minute channel down is the only bearish sign to watch for.
Bias: Neutral Bullish
Accuracy: 85%

AM Stock Selection Sheet download - a lot of good stocks to trade today. Choose the best ones and stick to them.

Updated at 7:30

Want more information about the Stock Selection Sheet?
Legends - Click me
Read this before using the information provided in this page:
1.Educational purpose material only. Use this information at your own risk.2.Stocks may be added to the selection sheet at any time. They are used as a guide to select which stocks I will trade and set alerts . It does not mean that I follow all of them, that would be crazy.3.The Accuracy information is for my own use only. It is reviewed after I am done trading. This is just a way for me to measure how is my reading of the market and my confidence in it. I suggest you develop your own way to do this.4.The morning sheet will be updated between 8:00 and 9:00
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