Friday, April 25, 2008

Friday wrap

MSFT's poor showing after the close Thursday was a dead weight on today's open. I suspect there were more than a few traders surprised, but yesterday's suspiciously weak close suggests some big money was in the know.
MSFT actually traded more shares than the Qs today (145M/122M) and closed poorly, though off the lows of the day.
The Qs staged a late afternoon rally (which I avoid on Fridays) showing good momentum, but unconvincing volume.
My sole trade of the day was a short at the open based on Microsoft's overnight decline which I entered at 9:44 (47.25) 0n 2 minute bars based on the failure of the 9:38/9:48 support line. With the 10/20 MA wide apart and the parabolics already on a sell, the probabilities looked attractive. My goal was S1 as an exit, but the squat bar that formed 9;54-10;06 and the subsequent parabolic BUY at 10:06 caused me to close the position at 10:06 (46.82). This was a quicker trade than I was anticipating, but the signals fired and my risk tolerance today was rather low as both the gas dryer and the refrigerator decided to go on the blink yesterday and I was thinking about getting them fixed instead of the market.
Time in trade: 22 minutes
Trade gain: .43
I obviously left some money on the table as the Qs proceeded to form a classic double bottom at 46.60 prior to the afternoon rally, but , all things considered, I've no regrets.

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