OLED, short
On Wednesday September 25th, OLED knifed lower from well-defined resistance.
Hit and Run used it as a swing short idea for Thursday on a Snapback to 209.
It looked vulnerable to its 20/50 day moving averages in the 200 region.
It popped on the open to 212.77 putting us short on the high tick of the day.
Drilling down to a 10 min shows how OLED Jack-knifed lower from the get-go singing to 208 where we covered a piece.
Notice the Measured Move decline to the 202 region perpetuated a rebound into the bell.
Notice the 10 min Train Tracks that defined the morning low.
“Sealing the deal’ is that 212 is 360 degrees or 1 full square up from the August swing low of 157.
This is how Hit and Run integrates Time, Price and Pattern.
APP short
The 133 level was flagged as an upside pivot on the Hit and Run Private Twitter Feed early this week.
Why?
133 “points to” August 5th when APP bottomed at 60.67.
As well the 60.67 low squares-out with September 26th,
APP opened on its top tick at 133 on September 26th skidding to a low of 125.62.
FIVE
FIVE is a setup we did not take on Thursday but is a good example of our Side Door Entry setup.
We did take FIVE long as it came out of a mini Cup and Handle in early September.
It pulled back toward its rising 20 day moving average on Wednesday again.
A 10 min FIVE shows the pullback from the Up Opening Spike that filled the morning gap producing a solid risk/reward entry at Phil D Gap.
FIVE rebounded sharply to test the morning high.
DELL
DELL was a long idea from Wednesday night’s Hit and Run Report.
DELL tried to breakout on August 30th but faltered leaving daily Train Tracks that perpetuated a drop from 115 to 101 in 4 days that undercut the 20 day moving average (not shown).
The drop pulled the rubber band back for another attack of the 50 day moving average.
This time the second mouse got the cheese.
Notice that the second breakout above resistance aligned with reclaiming its 50 day line.
On the 7th day of the consolidation, DELL came out of the consolidation causing us to use it as a long setup.
Thursday produced a Gap & Go north of the 125 strike.
If DELL shows momentum today it could elicit a OpEx Pinball play to the 130 strike.
133 squares out with the early August 87 low and should act as a magnet if DELL can clear 127.
This is because 127 vibrates/aligns with today, September 27th.
In sum, Hit and Run day trades and swing trades play for quick 1 day to 1 week profits.
Even on position trades, we usually take some profits quickly to assure a net profitable outcome.
Why? I think the secret to my success is I have a real fear of the markets. I have found that the greatest traders are the ones who are most afraid of the markets.
They have survived long enough to know that markets can do anything.
My fear of markets has forced me to hone my timing.
Timing is a combination of experience and ones nervous system.
If my nervous system tells me to get out or to lock in a gain, it is because the market action triggers something in my knowledge and experience that I have seen before.
Allow me to explain my trading philosophy.
When I go to the park where I live in Malibu, I see how the sparrows eat.
When people feed them bread, they take just a little piece at a time and fly away.
They keep flying back and forth, taking small pieces of bread.
They may have to make a hundred stabs at a piece of bread to get what a pigeon gets at one time, but that is why a pigeon is a pigeon (pig-eon?).
You will never be able to shoot a sparrow, it is just too fast.
This is the essence of Hit and Run Trading.