Amen Corner often offers the most exciting holes of golf at the Masters.  Today 18.25 in WFC was our Amen Corner for WFC.  There was an easy short below this level when WFC was in an intraday downtrend.  There was an easy long when WFC held above this level when WFC was in an intraday uptrend.  Let’s discuss. 

First let me say, “What the ARod Chad Campbell!”  Anytime something unbelievable happens on the desk we start our description with “what the Arod.”  And I am a Yankees fan.  Chad Campbell is -9 thru 16 holes.  Amazing.

As intraday traders we must be mentally agile.  I could care less where WFC finishes.  When WFC is in a downtrend, then I look for opportunities to short.  I shorted some WFC at 19 when it clearly was in a downtrend.  I shorted some more when WFC broke to downside after consolidation at 18.50.  I shorted some more when 18.25 sold a massive amount of stock.  But then WFC’s pattern changed near 17.50.  The offers lifted quickly above 17.50.  I had not seen offers lift quickly the entire downmove.  Also WFC stuck near the 17.60 level and did not make a new low.  I had not seen this during the entire downmove.  So I covered.

When WFC traded to 18, I shorted again.  But when WFC showed me its strength holding above 18, I flipped my position.  I started a long position.  When WFC traded easily through the huge 18.25 resistance level, I added to my position.  For the rest of the trading day I bought into pullbacks, made the spread, and held my core long position.

I was mentally agile.  When WFC was weak I was short.  When WFC was strong I was long.  For those interested in an excellent book on technical analysis that teaches the new trader the importance of following the trend, read Brian Shannon’s book.  I utilized the principles that Brian teaches to trade WFC profitably today.  Though I can also not overlook the invaluable contribution that wearing my Masters polo, while trading today, must have had on my results.

Definitely looking forward to watching the Masters this weekend.  I will be rooting for Norman, Mickelson, and Couples.  Enjoy the holiday!  Don’t forget to follow us on twitter.