I traded WYNN today.  It was a very good intraday trading stock.  I have noticed lately that stocks are being bought differently in this new market.  Let’s discuss the trading in WYNN today to explain.

The market has sold off from 13,000 to today’s close of 7270.  WYNN has sold off from 110 to today’s close of 21.75.   Lately it takes time for stocks to trade higher after buying is identified.

21.60 was a significant intraday level in WYNN.   WYNN was in a downtrend trading between 21.25 and 21.60.    WYNN had trouble trading above 21.60.  It finally did.

Now normally after a stock like WYNN traded above 21.60 we would expect a quick upmove.  In fact, if after WYNN cleared an important intraday resistance, and did not trade higher quickly, we would assume that this was a fake breakout.  This may be the case in today’s market, but I have noticed that there is also another possibility.

Stocks have taken longer to trade higher after significant buying is identified.  Lately it is not unusual for WYNN to take out the resistance level of 21.60 and not trade higher immediately.  Lately a 21.60 level is cleared and a stock like WYNN slowly buys on the bid.  And this is what we saw today in WYNN.

WYNN traded above 21.60 so I started a long position.  But I expected a bid to step up above 21.60 and hold.  This did not occur.  A 21.60 bid did appear.  But that bid often dropped.  There was some buying at 21.60, the bid would drop, and then offers were cleared on the downticks.  WYNN was being bought at 21.60 it was just being bought slowly and carefully.

I saw this same pattern in PCLN and MFE last week.  It is not my job as a trader to spend much time figuring out why this is.  It is my job to recognize this pattern.  And this has certainly been the pattern in the stocks I have been trading lately.  The upmoves just take sooooo long to develop.

As you can see from the intraday chart WYNN eventually trades higher.  WYNN made a very nice move from 21.60 to 22.87 before it reversed.  But the move took time to develop. So going forward I will be more patient when I spot significant buying.  I will give my stocks more time to trade higher since this is the pattern of late.

Lastly 21.10 is an important level in WYNN.  It could not trade below there today.  21.10 held three times. I will set an alert for this level.

Good to be back at my real job trading.  It took a great deal of work to prepare for my two presentations at the Trader Expo.  Sorry I did not have time to blog.  Thanks to Alex for his help with the presentations.  Thanks to Emre for his help with the videos.  Thanks to GMan for working his tech magic so we could pull the whole thing off.    Thanks to Roy for setting the whole thing up.  And of course thanks to Charlie for just being Charlie.

Best of luck with your trading!