Intraday Market Action Setting Up Long Trades

Posted on August 25, 2010 by trader21 in *TODAY'S STOCK SETUPS, Trading Plan

We are seeing a reversal off the lows late in the day. If this can hold up through the last hour then this can be viewed as short term tradable rally of at least a day or 2. If this can hold then we should have some high probability Long trade setups for Thursday. Many of the supposed professionals out there were loading up the shorts the past couple of days and if this close sticks we will watch them all get squeezed because they may have the right idea but their timing is a joke. You don’t start shorting on day 5 of a selloff you at least wait for a bounce and short the bounce.

BUY RULES

*We look to buy our setups when they break at least 10 cents above the prior days high. This gives us confirmation that the setup should continue higher and increases the odds of an explosive move. Depending on market conditions we will look to start taking profits on ½ position when we get a move of 3%-5%. We then move our stop to breakeven for the remaining position and let it run in hopes of massive gains.

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