An A Trading Set up

So we have all these uber smart guys walking around our desks at SMB.   And they are always asking for more.

“Bella how about a review of the best set ups of the month?”

Steve is doing that as I write.  I already have learned these set ups so I get to sit it out. Plus I picked out half the trades so I know what is gonna be said before its said. I am a partner. They give me those privileges.

“Bella can you categorize your trades so we know which ones are best?”

So it’s not enough that I give them our intraday playbook.  But now I have to highlight the best of the best trades.  What is with this Millennium Generation? So as I stand as their servant we classified our trades.  We got some A trades.  We got some B trades.  We got some C trades.  We have D and F trades but we are not supposed to make those.  And so today of all days in a stock I have not traded in months Mother Market gifted an A trade.

There was this news on CEPH:
Cephalon: Color on Cinquil data (54.82 -4.79) -Update : CEPH is trading down 8% this morning after it and Ception announced results from a Phase IIb/III clinical trial for Cinquil (reslizumab) as a treatment for pediatric eosinophilic esophagitis (EoE), which did not achieve statistical significance in the second co-primary endpoint.

Look I am not an analyst but that does not sound good.

CEPH was lingering around 55 before the open.  CEPH traded a little below and then found 55.  Now there is all this talk about HFT this and HFT that.  I could swear HFT burned my bagel this morning.  And I suppose there is a lot it.  But every so often we find a play where the HFTs leave us alone.  And it’s like I am 27 again, thin, young, good-looking, athletic, dating multiple young ladies (I might be making this part up), sitting at my trading desk trading my own account up 10k plus.

The 55 offer in CEPH refused to lift.  The offer was tested at 55 multiple times and for serious volume and the seller would not lift. Like Gandhi on a hunger strike our 55 offer would not budge.  Hence we have the Unusual Hold on the Offer Play.  We have an A trade.  Short CEPH.  Trade2Hold.  Bella not covering unless there is a reason to cover.

At the time I know some were thinking,”Is the offer gonna lift?”   This all seemed too easy with our stubborn offer player just taking all sales 55 on the offer.  But that is why we call them A trades.  No one said that every trade had to be difficult.

The tape showed us tremendous resistance.  A weak stock had opened and found a seller.  There was no support to 53.80 and then 53.20 on the longer term charts.  Get short, hold, and execute.

Best of luck with your trading.

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