Spencer Special – SMB Radar Play of the Day

Sep 15th, 2011 | By | Category: General Comments, SMB Radar
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Without permission, I’m going to name this  play the Spencer Special (unless there is another SS play, in which case this will be the SS II).

The beauty of this play is its simplicity, here are the requirements:

- The stock is In Play

- Top on the Strong or Weak Today column on the Radar

- Is above / below an important level

- Is consolidating tightly for an extended period of time

Today we got the Spencer Special in $NTES. It was a top stock on the Weak Today list around midday today (yellow box) and was In Play enough to take a trade in (red color indicates In Play level). It clearly held below the important 46.50 level, a recent daily low / support (red line). Then began to consolidate for about an hour below the level (white box), the play from here is simple and straight forward. Stop is above the consolidation, target is a measured move that lands just in front of the next major support (45.60 target using 45.30 as the next support).

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- Tarhini, trader

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  • Anonymous

    Real neat post! I liked the use of visuals with the radar and chart. 

  • http://twitter.com/#!/tarhini_smb Tarhini_smb

    I agree :) 

  • http://twitter.com/NASDAQBEAR NASDAQBEAR

    Kick-Azz as usual…,Gr8 Job SMB !! 

  • Nickfahy22

    awesome post with the visual, thanks

  • Bobby Brown

    very good info and visual of this setup. My best setup is very similar to this (minus the radars). It’s either called a dbi (drop base implosion) for shorts or a jbe (jump base explosion) for longs, first learned from the book “Techniques of Tape Reading”. Sell/cov signal shown from the volume with one form coming from euphoria/capitulation. Obviously expanding our playbooks and improving our best setups is a never ending goal!