AI
Tuesday, December 09, 2003 5:57:53 PM
MCHP an example of support/resistance for our other tech shorts: Now we have a straddle in TOL, its no longer enough to focus on one sector. A typical morning buy/sell trigger would have run us into trouble right in the first 15 minutes triggering a buy virtually minutes before the market tanked! (XLNX was an example also of what we avoided by waiting for 10:00 no matter how good XLNX might have looked in daily chart, somewhat tempting for the overexuberant shouting upside at the open into 10:30 but not for us)
Marketgems has more earnings plays down the road and 2 complete sectors coming up next week, not too optimistic there. We buy off support after giving strict instructions where to expect upside, sometimes we leave it when the overhead resistance turns into a "pattern failure" one of the "killers" of the scalp trader. There is no such thing as too much education but there is a thing as too many scalps masquarading as trades.
KLAC, KLIC, NSM, MCHP pretty much same pattern but here we prevented any premature buying while holding shorts UNTIL THE LAST possible moment (3:30 to 3:45). Absolutely not one of our intraday chart patterns in technology (nor much of anything else including TOL, AZO) led us to go long from the 10:00 first spike high shorted At 31.50 there was an important consolidation attempt to break but it was to the downside. 32.20 was support that quickly turned into resistance as it was taken down, each support was eroded throughout the session. Positions were covered 50% incrementally into the FOMC but never once during the entire sessions were we NOT in at least 50% of our 10:00 short plays.
Marketgems has more earnings plays down the road and 2 complete sectors coming up next week, not too optimistic there. We buy off support after giving strict instructions where to expect upside, sometimes we leave it when the overhead resistance turns into a "pattern failure" one of the "killers" of the scalp trader. There is no such thing as too much education but there is a thing as too many scalps masquarading as trades.
KLAC, KLIC, NSM, MCHP pretty much same pattern but here we prevented any premature buying while holding shorts UNTIL THE LAST possible moment (3:30 to 3:45). Absolutely not one of our intraday chart patterns in technology (nor much of anything else including TOL, AZO) led us to go long from the 10:00 first spike high shorted At 31.50 there was an important consolidation attempt to break but it was to the downside. 32.20 was support that quickly turned into resistance as it was taken down, each support was eroded throughout the session. Positions were covered 50% incrementally into the FOMC but never once during the entire sessions were we NOT in at least 50% of our 10:00 short plays.
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