Trade Review - NKE - July, 01

Stock Selection Information

No relevant news on the stock. It had it´s earnings released on Friday morning or Thursday afternoon and it was in play (2nd day play). Stock had a bad reaction to the released, but recovered during the day. Today I was going for the follow up on that recovery.



Watch List Reason - 2nd day play
Pre-Market Volume - None
Trading Plan - Go long above 64.00

Management

Entry Setup used: Open range break up


Trading Comments

The level I was watching was 64.00. Market test it twice before actually moving. Could see some buyers on the tape and the Open Range formation I like to trade. As it was breaking the range up, I joined the buyers. It took 2 trades before the stock start moving up.
Market was overall strong, which helps long position. Reading which way it was moving and if it was following the expected scenario helped to find the entry/exit spots.

Evaluation

It was a good trade and well managed. The problem after that was to stick to the stock (that was moving higher) and take the other trade entries it was giving me. Besides that, it was a good trade. 
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Daily AM Prep - July, 01

** Preparation for Morning Session**

MARKET CONDITIONS

World Markets News: Asian markets finished broadly higher today with shares in Hong Kong leading the region. European markets are higher today with shares in London leading the region.

  • 10:00 - ISM Manufacturing Index - Bullish expected
  • Holidays: Canada and Hong Kong

Economic Calendar



SPY - World markets are on the green. Spy had a sideways consolidation during last session, closing the gap up of previous day. Notice the volume decreased in this up move.
1-) Neutral (33%) - Monday morning usually is a low session so the continuation of the sideways move is a possible movement for today. The range limitations are 161.50 and 160.00. If market start trading outside the range, move into the other scenarios. If volatility is very low, do not trade.
2-) Bullish (33%) - If start trading above 161.50 a gap fill is possible and the first resistance is the 163.00 level, followed by the long term down trend. Trade on the long side, but be careful when the resistances are reached.
3-) Bearish (33%) - The down move would come into play if start trading below 160.00, but a close support at 159.25 could cause prices to move back up. If not the down trend would continues and a new trend down line could come into play. Favor short trades.

Long Term Bias: Bearish
Short Term Bias: Neutral
Accuracy:

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Updated at 7:40

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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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