$JBL had earnings, so it was not a huge surprise to see it on our In Play list on the Radar. Still, a reading of 7.7 is good even for a stock with earnings. This means the stock will have heavy, unusual order flow – and it did. But that alone isn’t going to help with bigger plays. Sure, you could have tried a few scalps on it on the open and made some money (I didn’t), but for the most part, we are looking for the bigger play.
A huge tell for us comes around 10:00 – 10:15. We check the top In Play names and cross check them with the top Strong and Weak today lists – stocks that are leading on 2 lists will tell us the name has a bigger play in it (some examples on the blog). Today $JBL was top In Play, but not on a single other list by 10:15 (as I write this its on the lower end of the Uptrend list). While I didn’t make any money in it on the immediate open, it saved me a big head ache / more losses for the rest of the open. I will still keep an eye on it for any developments.
4 Comments on “A Perfect Example – $JBL”
tick chart?
yes
“We check the top In Play names and cross check them with the top Strong and Weak today lists – stocks that are leading on 2 lists will tell us the name has a bigger play in it (some examples on the blog). Today $JBL was top In Play, but not on a single other list by 10:15 (as I write this its on the lower end of the Uptrend list).”
im assuming to make other lists stock has to be making high/lows on the day?
how often do you flip sides – i assume you want to be most aggressive in direction of gap trends?
yes the algo is looking for momentum off of the open. if the stock has momo and trending to the downside off of a gap up, we have to be ready to short. especially in the context of the market.