Daily Review - Momo Strength

Coming into the week my plan was to be cautious because of the big run-up the prior week.  Yesterday I passed (didn't get filled OPEN) on a few trades because I didn't believe market had the juice for breakouts.  I was obviously wrong.  Just look at yesterdays charts for UA, OPEN and YOKU.

Last nights HCP newsletter and Daytrader Toolbox post talked about market sentiment and how important it is to focus on shifts in sentiment.  I came into the day planning to be a bit more aggressive with my entries and not focus so much on how extended we are.

Took 3 trades today:

Long 500 FFIV at 104.95 - 105.00 with stop at 104.60.  Exited 400 shares at 106.20 and was stopped out on rest near 105.15 area.  Chart doesn't show it but my trailing stop was the 20EMA/5 min chart.  Another potential entry was 104.00 with stop around 103.60.  Very similar setup to YOKU yesterday and a setup that HCP mentioned in yesterdays blog post.

Long 400 CTSX at 81.30 with stop at 81.00.  Risked a little bit less on this trade because intraday setup wasn't great.  I was stopped out around 81.20, got nailed on slippage.

Long 300 WYNN at 152.50 with stop at 152.00.  Exited entire position at 153.30 (R2).  Risk reward wasn't great but the intraday base around 152.50 was nice.

Almost all stocks are very extended on the daily charts but momentum is strong and great intraday setups are being bought.  Not sure how long this will last but have to enjoy it until it stops.