Replies to post #7276 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[_HD]

Jenna, another psychotic day in a series of psychotic days. Curbs In up, Curbs In down ... always a Curbs In these days. So is this rally anything to take seriously over the course of the next month, or just yet another one-day rally wonder? Thanks.

HD

[jenna]

BBH don't be in a hurry to sell the rest of these puts. Biotechs and pharmaceuticals are having strong pullbacks at the typical 10:15 to 10:30 area. Buying the 10:00 highs will have you repent at leisure. Beaten down techs like ZRAN, XLNX and even NVDA are showing the real move up around 10:15 to 10:30 as well. So this area is pretty critical because

First reversal period 9:50 to 10:15 Best area for an early pop

10:00 No Man's Land.. usually area for pullbacks.

10:15 10:30 signifies the REAL DIRECTION of the market that would last until at least the doldrums (11:30 to 1:30).

Why these areas are so crucial:

1) 10:15 pullbacks can get you into the stock at dips so why buying the 10:00 highs

2) total reversals and moves down can be confirmed by the 10:15 to 10:30 area (BBH, WLP)

3) On a strong day I'd rather buy the 9:50 (beginning of first reversl period and hold through 10:15 as this is the correct area of first reversal period. Here AGGRESSIVE SCALPERS can capture the first big move of the day and even lock in their first profits by 10:15. (XLNX, ZRAN)

I'm watching WLP for an exit area aned WLP is pulling back to its declining 100 period moving average on the 5 minute chart. If this breakds down below 67.59 it would have filled the gap up and consider leaving about 10 or 20 puts.