Trade Review - MRK - May, 28

Stock Selection Information


  • UPDATE: Jefferies Upgrades Merck to Buy, Raises PT Following SOTP Analysis
  • Three Big Pharma upgrades: Jefferies takes Merck (MRK) and Bayer (BAYRY.PK) to Buy from Hold and Deutsche Bank lifts GlaxoSmithKline (GSK) to Buy from Hold.



Watch List Reason - Stock got upgraded from hold to buy
Pre-Market Volume - N/A
Trading Plan - To go long above 48.00. 

Management

Entry Setup used: Long above resistance


Trading Comments

Reading the tape help a lot on this stock today. First the bids were being hit and price was not dropping. When it moved above 48.00, it was my entry signal confirmed by what I saw on the tape. Later the 48.30 level started to work as a resistance. When it broke above, it became by adding entry signal. Finally when it start to show that the sellers were hold prices, I hold out. 

Evaluation

I did not followed exactly what I had planned, closing my position before I wanted. My exits on the stock were not good. I could´ve taken a little bit more hit and get out at better prices. Still it was a good reading of the market, when I realized there was not much momentum, turning the positions into a holding one. Overall I was glad with the way I traded it.
No comments:

Daily PM Prep - May, 28

** Preparation for Closing Session **

MARKET CONDITIONS


SPY - Today I will be not using the up trend line / channel as a reference anymore, because market has start a new stage. This do not mean it can not move higher, only that the most recent price action suggests the market it moving into a different stage and it is no long in trend. If you look to the weekly chart yes, market is still trending up, but on a daily time frame it found sellers at the 169.00 and it is forming a new range. between 169.00 and 164.00. This are the main reference points for me now. The point of control from this move is the 166.50 and where market is trading now. If breaks these extremes we have to re-evaluate. For today it is expected a neutral day. Market may even make a new low, but the slow action today suggests it will trade around the 166.50 level. If we start to hold below 165.50 then we become for bearish for the day.

 Long Term Bias: Neutral Bullish
Short Term Bias: Neutral
Accuracy: 100%

PM Stock Selection Sheet download
Updated at 12:30

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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Daily AM Prep - May, 28

** Preparation for Morning Session**

MARKET CONDITIONS

World Markets News: Asian markets closed sharply higher today with shares in China leading the region. European markets are sharply higher today with shares in London leading the region. 

Economic Calendar


SPY - Markets around the world are green, after a holiday yesterday. Last week market made and inside day, that is breaking up today. If we stay above 166.00, there a good chance that we will test the 168.50 / 169.00 resistance again. If it does, we have to watch how it behaves around this level e re-evaluate. If market decides to turn back down, below 166.00, on a shorter-time frame it would be considered a failed break up, that could lead to a larger drop in prices below 164.00. A potential range is being formed between 169.00 and 164.00.

Long Term Bias: Neutral Bullish
Short Term Bias: Bullish 

Accuracy: 100%

AM Stock Selection Sheet download - not much going on so far. Watch to see if there is a good pre-market move in any other stocks.
Updated at 7:55

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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