Yesterday I traded STJ for most of the day. I learned that 33.60, 34.25, and 34 were important levels. Essentially STJ traded in a range for most of the afternoon yesterday 33.75-34.25. Then into the Close STJ broke down and traded down to 33. So what can we learn from yesterday to help us today? I have a play for you. More accurately I have a play for you which I stole from Connor. What is the point of being a partner if you cannot co-opt ideas from the traders on your desk? Let’s discuss.
STJ was weak into the Close. 34 is a level. STJ traded up quickly on the Open with an unusual High Bid stepping up to 33.95. STJ opened and Piker High Bid stepped to 33.75c. The bids were hit. Then Piker High Bid stepped to 33.85. I hit the bids. Then Piker High Bid stepped to 33.95 where Connor and me hit some more bids. What the hell was that Piker High Bid thinking?
34 is the resistance level which we clearly learned from yesterday. On very little volume STJ is trading near resistance after it closed weakly. Piker High Bid gifted us an awesome risk/reward opportunity up here at 33.95. Thank you Piker High Bid.
I had 4 lots and I scaled out of my position down to 33.40. I am holding some as STJ finished weakly, 33.85 is now monster resistance, and STJ is still in a downtrend. But I would like to see some more weakness below 33.40.
If a stock gaps up on light volume to a resistance level from yesterday get short. If resistance lifts then cover. But this is an excellent risk/reward opportunity which we exploited. I offer this for you to consider for your trading playbook.
Heading out to the Yankees game tonight with my dad. It doesn’t get much better than a night at the Stadium (even with the insane windy conditions today in NYC), with the Yankees in the playoffs, and talking baseball with my dad.
Best of luck with your trading. Don’t forget to follow us on Twitter!
3 Comments on “STJ- Second Day Play”
Bella
Very interesting and insightful blog post, i have some questions
1.Why did you not get long as mr.piker high bid stepped up, does that not indicate that break above 34.00 is more likely?
2.like you said the upper range from the prior day is 34.25, what was your exit for the short position, above 34.00, buying above 34.00, or above 35.25
3.would you go long above 34.00 considering the weak close from the prior day
4.what makes you conclude that 34.00 is a lvl, did it not get penetrated a dozen times on tuesday?
Appreciate your response and happy trading,
lil steve
Bella
Very interesting and insightful blog post, i have some questions
1.Why did you not get long as mr.piker high bid stepped up, does that not indicate that break above 34.00 is more likely?
2.like you said the upper range from the prior day is 34.25, what was your exit for the short position, above 34.00, buying above 34.00, or above 35.25
3.would you go long above 34.00 considering the weak close from the prior day
4.what makes you conclude that 34.00 is a lvl, did it not get penetrated a dozen times on tuesday?
Appreciate your response and happy trading,
lil steve
thxs for the comment. I will reply in a future blog post.