I received this comment about my last blog Second Day Play- STJ.  Let’s discuss.

Bella

Very interesting and insightful blog post, i have some questions

1.Why did you not get long as mr.piker high bid stepped up, does that not indicate that break above 34.00 is more likely?

2.like you said the upper range from the prior day is 34.25, what was your exit for the short position, above 34.00, buying above 34.00, or above 35.25

3.would you go long above 34.00 considering the weak close from the prior day

4.what makes you conclude that 34.00 is a lvl, did it not get penetrated a dozen times on tuesday?

Appreciate your response and happy trading,

lil steve

Bella Responds

Piker High Bid stepping up may have been a sign of strength.  But doing so so early on the Open and the way he was stepping up seemed odd to me.  My sense was when Piker High Bid got hit and dropped that STJ had an excellent chance to trade down to 33.  Coupled with resistance at 34 hitting the Piker High Bid at 33.95 offered an excellent risk/reward intraday trade.

If STJ would have traded through the whole I would have covered half.  I would have covered the rest above an even more significant resistance level of 34.25.

Interestingly I shorted STJ today at 34.25 as this is a significant resistance level.  I tweeted this idea in real time.  And I covered into the dowmove below 34.  I will play this 34.35 on both sides.  If STJ holds above the level I will get long.  But as long as it has trouble trading above 34.25 I will trade it from the short side.  A longer term target is 33.  A shorter term target is 33.85ish.

Finally 34 was a level because there was some volume done there after STJ failed at 34.25.  And then STJ traded down to 33.  So for us 34 and 34.25 were levels.  Certainly 34.25 was the more significant level.

Much more importantly looking forward to Game 2 tonight at the Stadium.  As I write I have tickets in the LF bleachers (my dad got them) but looking to buy better seats.  However I absolutely refuse to pay more than $150 for seats.  Paying more than this for a game, show, dinner is my absolute cut off.  Anything more expensive than this and it ruins the event for me.  And this is not the ALDS.  I cannot believe the prices I see on StubHub.  And I am a huge Yankees fan with the means to pay pretty much whatever I want for a ticket.  It is impossible to find a good seat for $150 or less.  I thought our economy was hurting?  Anyway I have my bid in at $150 and am not paying higher.  If I don’t get hit I will just sit in the outfield.