Friday, April 18, 2008


Another strong day with GOOG leading the way. MSFT got away from me today. I should have bought those 31 calls yesterday instead of waiting for weekend decay. Saving a few pennies cost me a bundle. Next time maybe I'll go for it when the signals fire.
Above chart is 2 minute bars (partial day) to display today's trade technical dynamics. The trade today was based on the 2 minute 10/20 MA cross strategy, which has worked well in trending days. Initial entry at 10:34 (46.40) coincided with the parabolic sell signal that fired back on 10:24. I was considering entering at 10:24 but the NYAD was on a pullback at that time and I don't trade against the NYAD. By 10:34 the NYAD was upslope once again, and with the Qs at the same price as 10:24, I went long.
Keeping in mind my Friday bias to sell well before the close, I decided to follow the price up on the 2 minute, in lieu of the 5 minute, since the markets were already overbought (my opinion only).
At 12:34, the hairy top that at held for 12 minutes gave way and the parabolics fired a SELL. Since I really had little confidence on this thing surging further and with the 10MA turning down, I closed out at 12:42 on a dumb luck uptick at 46.85. The 10/20MA did cross at 12:50 so I had no regrets about the premature parabolic driven exit 10 minutes earlier.
Net time in trade: 138 minutes
Net gain: .45
While not the greatest trade, I did manage to follow my trading plan and capture the sweet spot in today's action, while limiting my exposure with the parabolics and the 10/20 cross stop.
Tomorrow, with the Weekly Qs Update, we'll look at the "kiss the channel goodbye" concept.

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