Scanning the market universe on the open STT, State Street Corporation, caught my eye.
1) I liked that it was down a lot
2) I liked that after the open it showed an ability to move away from prices
3) 40/39 were levels on my long term charts so it still had room to trade lower
4) There was a nice battle on the tape at 40.50 which I could trade off of
I noticed some on our desk chirping about SWN. My intuition was- not a fan- since it had not shown an ability to move away from prices. There was some chatter about PM. I liked that way that looked, placed a short, but got stopped out. I would make that trade again. Some were hawking the chip makers- LLTC and friends- but again I did not see an ability to move away from prices. CCL as a Second Day Play because it was above 39.80 was at the top of the list.
STT offered the easiest intraday trade of the Open for how I look at the markets. That big battle at 40.50 that I referenced sorted itself out and found the sellers in control. I started a short. STT came back to 40.50 and never lifted this level. This is what I want to see on the Open. Cleanliness. No above and below a level. A level failing and then holding that failure. I can make a lot of money with this pattern.
I sit out of the game, preparing for our Open Review broadcast at 11am to our newer students. But think about your open. Were you in stocks that were clean? Were you in stocks that showed an ability to move away from prices?
One Good Trade
no relevant positions