The first trade I'm going to review was a trade I made yesterday (2/20/15) in Wal-Mart on the open. I was watching $WMT as a Second Day Play, as it had gaped down the prior day after reporting earnings. I was watching the longer term support area at $82.80-$83, which you can see on the daily chart below. The stock gaped down again on the open on Friday but was trading right at this support zone. I thought there was a low risk entry at this support zone for a move back up $84-$84.30. As you can see on the 1min chart below, I got long at $82.72 with at stop at $82.47. I thought $84-$84.30 was a reasonable target based on the prior day's failure areas (5min chart below), which represented over a 5/1 risk/reward. I sold most of my position intraday but held a quarter of my original position size as a swing.
Note, this isn't a long-term swing long for me; it's more of a "tactical" swing, where I used the shorter term time frame to execute my trade (risking 25 cents in this case) and then look for continuation in the coming days. I'd look get flat on another 1-1.5 up move.
|$WMT, daily chart|
|$WMT, 2 day 5min chart|
|$WMT, intraday 1min chart|
Before moving on, I want to emphasize a technique I've been trying to implement into my trading recently, a technique I co-opted from @sspencer_smb. Stated simply, I've been identifying important "inflection points" (support/resistance levels) and then have been using the shorter time frame to execute my trades and to better control my risk for multi-day continuation patterns (hopefully, this makes sense). The next couple of trade reviews should help to explain this idea further.
The next trade review is for a trade I made yesterday in $SPY (the S&P 500 Index ETF) on the long side. The trade was a simple Technical Trade. There was intermediate support at $208.70-$209. I bid $208.73 with a 30 cent stop, and I was lucky enough to get hit with a LOD print ;) As you can see on the 15min chart below, I then scaled out of my position into $210-$210.30, which was the top of its three-day range. $SPY then proceeded to move up another point from there and closed at highs of the day so I decided to hold a quarter size position as a swing.
|$SPY, 15min chart|
The next trade review is for trade I made in FireEye on Thursday morning (2/19/20) on the long side. $FEYE reported earnings late last week that were above the consensus ($-0.64 vs $-0.83 estimate), and the stock proceeded to break out of a multi-month base going back almost a year, which you can see on the daily chart below. I didn't play the initial break above the $42 resistance level, but I marked up my chart with "inflection points" that I thought were realistic support levels that represented reasonably low risk entries. You can see all my trade management in the charts below.
|$FEYE, daily chart|
|$FEYE, 15min chart|
As you can see on the 30min chart below (1 of 2), I marked up $434-$435 as my inflection area; this was simply a prior consolidation/support area. On 2/2/15, $NFLX was down with the market but it was coming into this potential support zone. I got long at $434.60 with a stop below $433. I had intended on taking a quarter off at $440, and it bounced up to $444 that day, but I was off the desk and forgot to put in an offer and it retraced a bulk of that intraday up move by the time I got back (oops). But as you can see on the charts below, I proceeded to scale out into prior resistance areas. My most recent sale price was $480.37. I'm basically flat now (but still long), as it's exceeded my upside targets. At this point, I'm just holding out for a $500 print ;)
|$NFLX, daily chart|
|$NFLX, 30min chart (1 of 2)|
|$NFLX, 30min chart (2 of 2)|
Please let me know if you have any questions or comments.
Disclosure: Relevant Positions - Long $WMT $FEYE $NFLX $SPY as of this writing.