As I was finishing my cholesterol free egg and bagel sandwich in the premarket, I saw huge volume in WAG at 37.32. When WAG opened more volume was done right here. Holy important intraday level! WAG finally held this level and I got long right on the open in WAG (I am not shy). This was a support play.
WAG found higher ground but failed at 65c. So much for my hope of a hold on the open and then filling in the gap. I started a conversation with some of our traders. “Wouldn’t it be awesome if WAG came down to 32c and held again?” It did. I got long again.
I am not sure why (does it really matter?) but the buyers and sellers converged like a safety on a tight end over the middle at this 32c level. And the buyers won at 32c, the tight end broke the tackle and scooted up field.
WAG found its intraday resistance again at 65c but busted through this level. Huge prints went off at 68c (so big I needed to G to tell me how large). And then there was another huge print announced by ALJ. So GMan and I added more size. Above this 68c was another support play.
There were some things I did not like about the trade:
1) The market got very strong and WAG did not explode.
2) Connor made an excellent point that it is better to find strong stocks when the market is strong than this WAG, which was not acting that well (relatively weaker than the market?).
3) WAG does not accentuate my superior trading skills. It is so slow my speed, ability to trade both sides and mental agility are not rewarded.
But there was not a reason to sell really. The stock was not trading lower. While this was not the best position I have ever entered it was still a hold. As I write I am still long a little WAG. I did lighten up at 38, a premarket resistance level.
Best of luck with your trading.
Long 1/3 of a lot WAG, exit below 37.60-37.68 target 38.50-35.80.
16 Comments on “A Support Play- WAG”
negative comments on WAG from Pali capital
negative comments on WAG from Pali capital
negative comments on WAG from Pali capital
Was in the shark tank listening to gman this AM. I could see that .33 was getting hit for some size and hold, drops a couple of times to .32 and I could over hear you saying .32 holding I’m long. Great call Mike!
Was in the shark tank listening to gman this AM. I could see that .33 was getting hit for some size and hold, drops a couple of times to .32 and I could over hear you saying .32 holding I’m long. Great call Mike!
Nice trade. I bought it at the 37.75 support and held for a quarter.
I agree that it is probably better to be long strong stocks in a strong market but I don’t think that just because you are ‘mentally agile’ you should make it a point to focus on fast moving stocks. Trades like the one you did today in WAG are the easiest and safest to scale your size in. You probably could have bought 5-10 times the size you bought above the support level greatly increasing your reward and keeping the risk on a manageable level. Like Steenbarger says, we must always be looking for ways to step up our game! Great trade.
Nice trade. I bought it at the 37.75 support and held for a quarter.
I agree that it is probably better to be long strong stocks in a strong market but I don’t think that just because you are ‘mentally agile’ you should make it a point to focus on fast moving stocks. Trades like the one you did today in WAG are the easiest and safest to scale your size in. You probably could have bought 5-10 times the size you bought above the support level greatly increasing your reward and keeping the risk on a manageable level. Like Steenbarger says, we must always be looking for ways to step up our game! Great trade.
i thought the same thing to long a strong stock but couldnt find a good one.
i thought the same thing to long a strong stock but couldnt find a good one.
Jacky,
AMZN?
Bella
Bella,
I think my method of searching for stocks is not good.
Bella,
I think my method of searching for stocks is not good.
AMZN will implode in 2010
AMZN will implode in 2010
TSL was also a great play if you could catch the break or had gotten long at support. Great daily and strong relative to the market. 48.00 held and held and held, but when it finally let go there was no going back.
TSL was also a great play if you could catch the break or had gotten long at support. Great daily and strong relative to the market. 48.00 held and held and held, but when it finally let go there was no going back.