Lessons and Levels from today’s trading session

BellaGeneral Comments, Mike Bellafiore's (Bella's) Blogs3 Comments

Besides MM I really didn’t catch anything today. I paid for information on some important levels which perhaps will pay me tomorrow.

I played for BRCM to trend above 38 and then 38.20 and then 38.50. But BRCM dropped out and never really drove. I have set an alert of above 38.80 for BRCM. If it holds above here we may see 40.

MMM was the cleanest stock of the day. It was weak. 90.60 shorts and adding below 90.50 worked well to 90.10ish. A reshort into a spike to below R at 90.54 was another pretty simple trade with a cover at 90.11. I shorted below the fig and was well in the money with size before an end of the day move stopped me out back to the 90 level. Ouch! That was a lot of open P$L given back. But tomorrow I will watch 90 again for some follow through to the downside.

APOL I hate below 53.50 but love it above 54.20.

LXK I like at 33.50 and above 34.50.

SPY 134 is definitely R. S is 133.

BA showing weakness on the tape below 70 any of the next three days is short aggressively and hold. I didn’t fee the sell pressure below 70 in BA today so was light and careful with tight stops.

MCP I made many an effort but couldn’t stay in it. I thought I had it with a pullback to 63.25 after it exploded from this area but MCP visited below 63 and beyond. My stops were triggered and I moved on. I could feel MCP would somehow find a way to trade near 65 today, the next real level on our longer term charts, but I just couldn’t stay in the shakes. You have to play defense first. I will definitely watch this tomorrow and expect a cleaner day.

RSH feels like it has more upside to me. I am long overnight. If RSH can hold above 15.70 and 16 then the price action will start confirming my intuition.

You cannot ignore the price action into the close. Is it that as we get closer to a possible default the market will start punishing our government’s inability to strike a deal? So far we are not pricing in a possible default. Today’s selling action into the close was perhaps a signal that we need to get this issue behind us.

Bella
One Good Trade

3 Comments on “Lessons and Levels from today’s trading session”

  1. Thanks for the post Bella. I considered a short of MMM below $90.60 when it started to break to the downside but passed, oops! To make matters worse I let BIDU scramble my brains.

  2. I like the concept of “paying for information” . Often I put on a very small size on a stock and it works wonders in making me remember levels for the next few days.  I feel very lucky that you share your trades/thought process. Thkxs.

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