Friday, December 14, 2012

Trades of the day, RIGL and BBY!!!

I had 5 trades today, but I usually just post one great trade of the day. Today I'll be posting two. RIGL had a huge gap down yesterday and it still had a decent short interest percentage in it. When it started to tick up a bit this morning, I knew it might be ready to breakout of a short-term trading resistance around 5.70. Knowing some shorts weren't going to hold it over the weekend and just cash-out their profits, I decided to go long 1000 shares at 5.72. Sold it at 6.25 for a .53 point gain when I thought it went up too fast and needed a pullback. Now I'm wishing I held on a bit longer, but you can never really sell at the top.

Now as you can see on the below picture of BBY weekly chart since 2001, it was starting to flirt with a 10 year low around the 11.30 price level.
I waited this morning to see if BBY will break the 12 dollars a share price level, then when it took it out, I looked for a reversal signal on a 5-minute candlestick bar chart. The candlestick hammer ended up forming about 10 minutes later and I went all-in on a 1000 shares at the next 5-minute bar at 11.65. I placed a stop at 11.39 and my profit target was at least 12.25, making my risk to reward a lousy 1:2, but I knew the probability of  BBY going to a 10 year low today was not happening. Sold it at 12.10 for a .45 point gain.
If you want to see what I might be trading during market hours and interact with me during my trading days, just follow me on stocktwits or twitter @tradermike9.
One more note here,
 I want to express my deepest condolences to all the families In Newtown, Conn. who lost loved ones in this horrific shooting in that elementary school.

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