I’ve been wanting to do another trade review for awhile now, so here it goes. First one up: RVBD. RVBD was gapping down after-hours on Monday after reporting earnings. I noted on Stocktwits that I thought that, “Based on the after-hours action, I think it’s a higher probability that we see some kind of gap fill tomorrow than continuation down.” RVBD, despite gapping down initially, had made a steady comeback in the after-hours. This lead me to believe that there was a lower probability of seeing downside follow-through the next day. I wanted to let the stock settle out on     the open, as RVBD can be a bit wicky & whippy at times. The stock had a nice opening drive from $13.90 to $14.58 (I didn’t play this move). The stock then pulled back, and around 10am, started to consolidated above $14.20. This is one of my favorite setups. I like when a stock that is gapping down that has bounced after-hours/pre-market has an opening drive up, & then pulls back & consolidates with definable levels. I feel like these setups allow you to capture the next leg in a move with the risk/reward more in your favor. So I got long at $14.20 w/ my stop below $14.14. My intermediary target was the intraday high and then ultimately $14.80. (r:r of 5:1 to 8:1). The stock ended up topping out that day at $14.98 & just chopped around the rest of the day.  I feel like I did a good job of keeping my risk low in this trade. Perhaps I could’ve held more until $14.80, but overall I was satisfied with the trade. As a side note, have to give some credit to @stox4thewin, who was trading RVBD as well that day in the chat. Nice trade!

 

5min, after-hours chart of RVBD after earnings:

http://charts.stocktwits.net/production/original_13288999.png?1367276400

 

3min, intraday chart (partial):

http://charts.stocktwits.net/production/original_13387800.png?1367619094

 

3min, intraday chart (showing mid-day):

http://charts.stocktwits.net/production/original_13387808.png?1367619168

Next one up: FB. FB had earnings after the close on Thursday. It was definitely a bit choppy after-hours. I really wanted to keep it simple with this one. I knew $28 was the level all eyes would be on, and that a hold above $28 should lead to a move up to $29, the next technical resistance level. I took a quick scalp trade right off the open (see 1min chart below). But the main thing I want to share in this trade review is the consolidations that FB had provided & the clean levels to get in with size in a low risk manner. I noticed the stock was being bought at $28.06 on the open (hence me getting long for a scalp), but I also noticed that there was a $28.20 seller on the tape. The stock just couldn’t hold above $28.20. However, a little after 9:30am, the stock traded above that 20 cents all the way up to $28.48 (where I sold my scalp long). For the next 90mins, the stock traded in a nice range above that $28.20 level with the top of the range at $28.40. I got long at $28.22 w/ my stop below $28.17. I wanted to get bigger above $28.40. The stock traded above the top of the range, so I got bigger at $28.43. I sold a little at $28.68 to cover some risk, sold some more at $28.82 & decided to get flat at $28.95. While this one stock & its setups made my day (as well as some other names I traded that day as well), I feel like I should’ve gotten even bigger at $28.65 with a stop below $28.60. While I sold some at $28.68 to cover some risk, I should’ve bought more back w/ a tight stop & try to capture that move up to $29 or higher. Overall, though, I was pleased with the way I traded the stock; I waited for a clean setup, put on a position at the bottom of the range, got much bigger above the top of the range, & managed my risk accordingly.

 

Daily chart (pre-earnings) showing $28 level and $29 level :

http://charts.stocktwits.net/production/original_13388264.png?1367622024

 

1min chart showing long scalp entry & exit:

http://charts.stocktwits.net/production/original_13388273.png?1367622098

 

5min chart showing consolidation/range with notes:

http://charts.stocktwits.net/production/original_13388277.png?1367622128


If you have any questions or comments, please let me know (@MarketPicker on StockTwits).

Trade Reviews – $RVBD, $FB