It is the third day live for our new class and no one has finished over $100 as of yet.  Punks.  Basically during the midday I spend much of my time kidding with and harassing the guys who are close to this hurdle.  When one reaches $100 then many more will.  And one new trader was at $180 into the Close and then met MOS.   Oh so close.

So as I write still no one has finished the day over $100.  I am thinking about holding a mandatory film review session this Saturday as a result.  GMan is thinking about fining the class $1 for everyday they do not accomplish this goal.  All proceeds of course will go to the GMan drinking fund (I am not sure this is a legal charity so please keep this quiet).

This new trader remarked that MOS was too hard into the close.  And I respectfully disagreed.  Even for a new trader.  It was just that MOS offered three excellent plays and only these three plays.  All of us (me included) who gave back some money trading MOS into the Close did so because we made trades that were not advisable.  Which three trades were excellent plays?

1) Hit MOS when the negative news broke.

2) Short MOS below  48.75, a significant intraday level.

3) Buy MOS above 49.12 after the selling pattern changed.

Trade 1 would have been a chop as MOS fell 3 points quickly.  Trade 2 would not have worked as 48.65 held the bid and then MOS traded higher.  But this was still an excellent trade.  MOS was in a downtrend.  MOS offered a downside to 46.  And the significant intraday level was violated.  The trade just didn’t work.

When MOS cleared 49.12 we now had a buy signal.  MOS held the 48.75 level, held above 49, and cleared some resistance at 49.12.

These were the trades.  As I told that new trader who couldn’t hold enough of his gains to be the first in his class to finish above $100, MOS was a good trading stock.  MOS offered us opportunity.  That is all we can ask for as traders.  But now as traders we must review the trades that would have worked into the close.  And we must learn from the setups that did not offer us excellent risk/reward trades.

The trades above were the setups for an intraday trader that will work.  And now this new trader and I need to improve our trading so that we stick to these setups when we see the next MOS.

Off to a meeting.  Need to needle the new class for again not clearing this hurdle.

Enjoy your weekend. Don’t forget to follow us on Twitter!