It was a decent day for some trading opportunities, almost too many opportunities that it was hard to catch anything at the right time trying to follow so many different stocks. As well by mid day as we were up around 600 points i was skepticle to see the market continue higher. Yet i guess we can’t be surprised by anything in this current market environment.

Day Trading Stock Pick #1 - Long MS

MS always seems to treat me better than bad as i usually can pull a profit on this stock. Yet it is a dangerous stock as it can move so much so quickly on an extreme amount of volume. I picked up some shares and alerted our Black Service members to go long at 14.76 as price was consolidating in a nice looking ascending triangle pattern.

Note that you don’t want to go long on the first breakout of a stocks resistance as it usually leads to a false breakout. The 3rd breakout from a resistance point is the most reliable move to play. Not to say it always works because it doesn’t. But its the safest. Although secondary breakouts do happen as well as i was watching RRI today for a long position and missed it as it broke the secondary breakout point around 5.45 when i was waiting for a 3rd. So sure i missed that one, but trying to play secondary breakouts all the time and your pressing your luck. You will have a better success rate play the 3rd thus make winning trades more consistently.

I took profits shortly after on MS near $16 which was the current high of day area at the time for a solid 7%+ day trade. MS sold off and then continued on after that but in this hectic market i’m not looking to gamble and see what may happen towards the rest of the session. I’m in, I’m out, i made some scrilla!

Day Trading Stock Pick #2 - Short PNX

Second stock i attempted to tackle had a very high risk/reward ratio as PNX had traded up from 2.68 to just under $7/share in 2 trading sessions making a short with a tight stop very attractive here. Early in the morning it appeared momentum was in our favor for the bears as the gap up broke down and i went short at 6.40 and alerted Black Service Members.

Holding throughout the session it whipsawed up and down in a triangle formation until finally with the market becoming increasingly strong i decided to cover this position for small loss of just 2% before it could make significant damages to my MS day trade. This stock still has a very strong potential for a short later into this week but needed to cut my losses for now which turned out to be a very wise decision as it brokeout from its intraday triangle.

This was another near perfect setup for a shorting opportunity. My favorite short setup plays are huge rallys that halt near a strong resistance area. Its a pretty reliable pattern to trade with. Its very similar to the last few short day trades that i made on MFN and MVG detailed here.

Todays successful day trade was a short position on RZ which i alerted to Black Service members last night about the potential in this setup. RZ began falling as soon as the market open as i expected it would due to the fact futures were weak over night. Went short at 7.98 once it started breaking wednesdays low, we saw RZ fall as far as 11% today but i got a little greedy like we all do sometimes and was hoping to see the stock rebound and then fall again once it hit 13ema resistance on the 10minute chart. Once it became clear this wasn’t happening alerted black service members i covered at 7.69 for a nice 3.6% day trade gain.

Technical Analysis:

Looking into tomorrow its going to be a very interesting day. Not gonna reccomend anything for tomorrow cuz who knows what the hell is gonna happen. Its hard to say if the markets will even rally if the bill gets passed being that there is so much negative sentiment against the bill. In any regards, lets hope we get this bill passed and the market stabilizes so we can start making some serious money!

Lets get past all this monkey business eh? Washington needs to get out of Wall St!

Thursday was a decent trading session going 3 for 3 with my trade recommendations for our Black Service members which you can sign up for a FREE 2 Week Trial Here and have lead to an over 100% return already in 2008 for our stock picks!

Day Trade #1

MVG I went short near the open at 8.80 after alerting our black service members the night before of the potential trade setup up detailed here . Price began to slide right out of the gate early in the morning following that previous day bearish shooting star candle near heavy resistance indicating the likelyhood of a top reversal. We witnessed price drop near $8/share, made a small bounce and then began to trend higher. I covered at 8.23 as 13ema support began to hold and price appeared to be heading higher.

Technical Analysis:

Day Trade #2

MVG was a very similar set up playing a bearish shooting star candle off of a heavy resistance level. I went short early in the morning at 6.65 and eventually covered once price appeared to be making a reversal and exited with an average position of 6.37 for a nice 4.21% quick trade. MVG and MFN both fell sharply again in Fridays session but with the instability in the markets and the possibility of getting a bill passed by congress for the bailout it was risky business to be holding anything over night.

Technical Analysis:

Day Trade #3

QCOR was also another great looking setup for a day trade as price broke out from the 6.80 resistance mark. I Was hoping for a larger intraday swing but price was too slow and i sold very a minimal gain. Went long at 7.03 and closed the position at 7.05 before the close.