LDK

BellaMike Bellafiore's (Bella's) Blogs3 Comments

LDK traded well today. I have witnessed many intraday reversals and fake breakouts and breakdowns trading LDK in the past. My sense is that many big time swing traders take big positions in LDK and when the stock starts to reverse they hit the bids well thru to exit. It causes choppiness.

I didn’t see the choppiness today. LDK was pretty clean. It trended up for most of the trading day. It made a nice downmove from 50 to 49 during lunch but that worked out well for me. Tomorrow I will use the 50 level in LDK. Above I will look for strength. Below I will look for weakness.

LEH had trouble picking a direction today. All the moves were not sustained.

ELN above 14.50 will get me very interested. A hold above 14.50 in ELN and I will start a long position.

I gave MGM a go on the short side this AM but got shaken out. I never got back in. MGM below 29.50 is very bearish.

Overall we had some opportunities to make money today. There were some stocks that failed to follow thru after starting to trend. And I got caught on the wrong side a few times being overly aggressive in these stocks. But LDK was a great trading stock so the day ended well for me.

I will look for some fresh news on the Open tomorrow, but otherwise we have some nice levels to trade off of in LDK and ELN.

Enjoy your evening.

3 Comments on “LDK”

  1. My thoughts exactly on LDK from what I saw trading it last Thurs. It always seemed like in an instant the stock would dive past a level because in a flurry one guy pounded the bids hitting out a few thousand shares. Goes from a check-mark sign of strength (“no one seems to want to hit that level”) to a stock that’s trading against you by 10 cents, in the blink of an eye.

    How best to guard against that when you’re sitting on a light position? Just hit it out at the next level below? Try to get out on the offer now that its gapped (that doesn’t seem to work)? Just not trade the stock and seek out a higher-volume stock where you can react better once you see the bids starting to get hit? Do you see this pattern in alot of light-volume stocks? Thanks

  2. My thoughts exactly on LDK from what I saw trading it last Thurs. It always seemed like in an instant the stock would dive past a level because in a flurry one guy pounded the bids hitting out a few thousand shares. Goes from a check-mark sign of strength (“no one seems to want to hit that level”) to a stock that’s trading against you by 10 cents, in the blink of an eye.

    How best to guard against that when you’re sitting on a light position? Just hit it out at the next level below? Try to get out on the offer now that its gapped (that doesn’t seem to work)? Just not trade the stock and seek out a higher-volume stock where you can react better once you see the bids starting to get hit? Do you see this pattern in alot of light-volume stocks? Thanks

  3. I didn’t have any trouble getting out of LDK yesterday. And I wouldn’t categorize LDK as a light volume stock yesterday. Light volume to me is anything under a million shares a day. Anything under 600k and I am not interested. Not sure what your trading experience is but I would just say- get faster. One of the skills that experienced traders like Steve and I have is that we are extremely fast executing our orders. Drill on this if you find that you are slow. Practice entering your orders on a demo.

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