As of late, the market has been very in-play (SPY). Since topping out back in May 22 to putting in its most recent pivot low on June 6, SPY has moved 8.82 points. This is just a reminder that in addition to having your daily watchlist of in-play stocks, you should also be looking to play the market itself if it is in-play like it has been for the past 2.5 weeks.

    Anyways, let’s get to today’s trade review. First one up, TSLA. This stock has been a trader’s dream as of late, but it could also be the worst nightmare for an unprepared & opinionated trader. The trade I made in it was on Friday when the stock was consolidating above $98 for about an hour. At this point, the trade was pretty simple: I got long at $98.22 with a stop below $97.80 and my ultimate target was $102. So I was risking $0.43 looking to make $3.78, a r/r of almost 9:1. I sold some in the mid $101 area & got flat at $101.90. This trade alone made my day.

 

Here’s the 30min chart of TSLA I posted the night before outlining a potential trade above $98.

 

And here’s an updated 30min chart of TSLA showing Friday’s action/trade.

 

5min, intraday chart showing entry & exits:

What I will now be watching for in TSLA is to see if it can have a sustainable consolidation above $102, which it managed to close above on Friday.

$TSLA June 9, 2013 (5th for Post)

Next one up: ACAD. ACAD has been a very strong stock, trading below $5 at the beginning of the year to now trading at $17. On Thursday, the stock had broken above its most recent resistance level ~ $14.80 & closed at $16.57 that day. So on Friday, I had it on my watchlist as a 2nd day play. I was going to be watching $16.50, $15.90, & $15.60 as levels of interest.

 

Daily chart of ACAD

 

15min chart showing Thursday’s action & levels of interest to me for Friday:

 

I made a profitable trade (long) in it early in the day but was stopped out because I had tightened my stop, unnecessarily in my opinion. I did end up getting back in the stock later in the day. See the chart below for my entries & exits.

5min, intraday chart showing entries & exits (note, price should be $16, not $19, in the chart):

 

While I controlled my risk and all the trades I made in ACAD on Friday were profitable, I feel like I over-traded the stock a bit. The thing with most of these 2nd day plays is their simplicity. I’ve written about these “simple” trading setups before: https://docs.google.com/document/d/1jNnSO52NbniPRo32R6clnV8kt1oLquGnBjnf9nYImCY/edit

https://docs.google.com/document/d/1aU0ZT5q13RUqDi6m9RNEvcrjtDqH5aaTtxRcYQLr7lg/edit

The “simple” & less stressful way to have traded ACAD on Friday was to get long at $16.55 after noon (once it has consolidated above level of interest #1 – $16.50) with a stop perhaps at $16.48 and look for a move back up to $17 or higher. Remember, the key points with these 2nd Day Plays: 1) Strong the day before; 2) Get long once the stock has consolidated for period of time above a level of support from the prior day (or has developed an intraday support level); 3) At that point, basically just sit on your hands & let the stock work for you.

 

The last one up: CIEN. This was another 2nd Day Play. If you pull up a 5min chart of both CIEN and ACAD for 6/7/13, they look pretty similar in their intraday technical price movement. CIEN had gapped up on Thursday & closed strong, so again, I was watching it as a 2nd Day Play. The stock spiked above Thursday’s high, so there weren’t prior day support levels to trade against. I waited for some kind of consolidation in order to develop intraday support levels. I noticed on the tape it was being bought at $19.55, so this was the level to trade against. I got long in front of that level and then sold some in front of $20. I was stopped out of the rest (still net gain). I then bought back again in front of that $19.55 support level, put my stop in, & just waited. It turned out the stock ended up trading only 25 cents higher after I got back, but that’s not the point. The point is this: keep it as simple as you can with these 2nd Day Plays.

 

5min, intraday chart showing entries & exits:

Let me know if you have any questions or comments (@MarketPicker on StockTwits).

Trade Review – $TSLA $ACAD $CIEN (via @MarketPicker)