Open Shots: BBY

BellaMike Bellafiore's (Bella's) Blogs, Reading the Tape12 Comments

I traded BBY on the Open.  It does not get any easier than this stock on this open.  It just doesn’t.  I am positive as I write (BBY is at 41.60 now).  How could I not be?  BBY has done nothing but trade lower.  How is that difficult?

I am in my office now drinking Coke Zero, writing notes for a talk to our firm, and short BBY.  So I have calmed down a bit.  But during the Open at a few points I was pissed.   And I should have been.

Trading is a performance based job.  We can talk and talk and talk and talk about skill development and improvement.  And this needs to be our focus.  Improved skills are the answer to better results.  But there also must be an acceptance that we all must execute.  Pat Riley used to preach hard work and doing the little things but also explained, “you have to make open shots.”  And it is completely unacceptable to miss this certain trade today in BBY.

BBY was in a downtrend.  42.35 was intraday resistance after one important upmove.  BBY traded lower to 42.10.  The market exploded.  And at 42.35 the seller stood his ground.  Way more stock that I expected to be sold was at 42.35.  I thought BBY would find 75c.  It could not find 40c.  BBY showed its relative weakness on the tape.

“The market is so strong should I short here?” I asked myself.  Then I decided I should short.  I went low offer 34c.  Quickly the bids dropped out.  I offered 27c.  Quickly the bids dropped out some more.  42.10, previous support was violated, and I did not get short.  What was I waiting for?  At 42 there was a battle.  Too late to short here at the moment.

Why was I asking myself whether BBY was a short at 42.35c?  I was given an open look and I missed my shot. If I was wrong I could have quickly covered above 40c.  But I hesitated ever so slightly.  On this set up this is not acceptable.

Finally I found a way into the BBY short around 42.  I am still short.  I see no reason to cover just yet.  Maybe above 41.85?  BBY could see 41 or 40.50 later today.

My reaction was a call to myself to do better.  I must make my open shots.  Thankfully the game is not over.  Perhaps I will get some more open looks.

Best of luck with your trading! Don’t forget to follow us on Twitter.

HPQ 12-15-09

12 Comments on “Open Shots: BBY”

  1. Bella,

    Trading is about pattern recognition right? In todays environment, is it about recognizing the patterns of those who manipulate stocks.

    Supports blast through 15-20 lower then get bought up. Resistance blasts through 15-20 higher and get sold down. Hard to trade??

    BBY made me feel like I’m in a washing machine.

  2. Bella,

    Trading is about pattern recognition right? In todays environment, is it about recognizing the patterns of those who manipulate stocks.

    Supports blast through 15-20 lower then get bought up. Resistance blasts through 15-20 higher and get sold down. Hard to trade??

    BBY made me feel like I’m in a washing machine.

  5. Steven,

    I did get down to a third of a lot at 41. BBY had trouble at 41.80 into the close. I covered into the close. Thxs for the charts. Awesome stuff!

    Bella

  6. Jacky,

    If you struggled your entry points are the issue. BBY was in a downtrend for almost the entire day and then found support at 41. Not sure I am interested in trading tomorrow unless it as certain prices.

    Enjoy your evening!

    Bella

  7. Bella,

    My entry points ARE the problem. Reviewing my trades I shorted alot 10 cents below levels because I was afraid to miss the move. I feel like I can’t get in alot of times once I miss the level. Advice?? Thx.

  8. Bella,

    My entry points ARE the problem. Reviewing my trades I shorted alot 10 cents below levels because I was afraid to miss the move. I feel like I can’t get in alot of times once I miss the level. Advice?? Thx.

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