Technical Overview of Airline Stocks in the Wake of The ICELAND Volcano and Earnings: DAL, CAL, LCC, AMR
Apr 20, 2010 Small Cap Stock Picks
Airline stocks, among many other sectors, have been on fire over the past several months with many rallying over 100%. Yet as everyone involved in the market knows. What goes up must come down, eventually. Airline stocks are on the verge of a possible trend reversal and some have already broken there short term bull trends such as DAL breaking down its ascending wedge pattern today.
I feel shorting is the safer side of the bargain for air liner stocks as the Iceland Volcano has cost airliners millions and millions of dollars per day. Flights are back open yet if the volcano remains active then future flights are likely to be canceled frequently due to ash clouds.
This is also right as the DOW is trading at 18 month highs and battling with the 11k level which has shown to be a very volatile and choppy area to trade in. Theres no doubt that the market is overbought and profit taking and short term trend reversal will eventually come. As earnings are coming up we may see the typical buy the rumor sell the news theory play out. Tomorrow we have some major earnings such as Goldman Sachs for the financial sector which has been carrying the market. As for airlines DAL reports earnings tomorrow as well which are likely to be positive yet the trend just broke. I day traded DAL, AMR, and LCC on the short side today for profits but its my rule of thumb to never hold stocks through earnings. Unfortunately earnings had to come at a time when the chart setups are perfect and the Iceland Volcano is weighing in heavy on the air line sector. If DAL post strong results tomorrow though then we could easily see a pre-market gap up and squeeze a lot of the shorts. This could also create a new short opportunity though at higher prices which i will look for possibly opportunities. I would have held onto my short positions in DAL, LCC, and AMR yet with DAL and GS reporting earnings tomorrow morning. Look out for a wild open. I’d rather play safe then sorry and trade the post earnings action. Not try to play the guessing game of which way we will gap.
DAL Earnings: April 20th
AMR Earnings: April 21st
CAL: April April 22nd
LCC Earnings: April 27th
UAUA Earnings: April 27th
Technical Analysis: DAL, CAL, AMR
Oct 16, 2008 TTT.net Updates
Who ever said mo money mo problems?!? The more money i have the way less stressed i am and more materialistic things i can buy. Who doesn’t like materials?? Day trading has proven to be a profitable endeavour and its really not that hard. Just have to stay calm, be patient and wait for the right opportunities, and most importantly if the trade isn’t going your way, get out and cut your losses. Today we went 3 for 4 on our day trading stock picks that i alert to Black Service members in Real Time of buy and Sell prices so that they can profit from my trades. So lets take a gander and review todays day trading session.
Day Trading Stock Pick #1 UAUA
UAUA was forming a beautiful looking ascending triangle pattern and price was riding along the short term 13ema trend indicator. I went long at 7.57 on this support as higher lows were telling me this stock is in an uptrend and a breakout is in near sight above 7.75. Truth be told i was right and we broke to the upside where i took profits at 8.04 and 8.38. Sure this stock went up to $10. But you can’t predict that and need to take your profits while you have them in the fast paced day trading world.
Day Trading Stock Pick #2 PNX
We’ve been bank on PNX earliar this week on the short side but now it was time to hop in for some longs and see what kind of money we could make on this side. Early in the morning around the same time as UAUA i hopped into PNX as it was breaking out of short term resistance and went long at 5.42. Price quickly rallied up near the 50ema where i decided to take my profits at 5.72 for a solid gain. I tried going long in this again as the chart was telling me it was going higher and it did, but due to intraday volatility i was stopped out of my position for a small loss. Its essential in trading that you stay disciplined and cut your losses short. Theres no way i could have known for sure that the PNX was going to rally after i got stopped out at 5.59. The important thing is that i stayed disciplined and got out of the trade when it appeared not to be going my way before i lost any more money.
Technical Analysis :
Day Trading Stock Pick #3
And last but not least i went and bought some AAPL. And what do yah know were up on the position. How bout dem AAPL’s! AAPL has sold off a significant amount in this crap of a market so as the market was forming a bullish hammer candle during the session which signifies that a rebound could be in play i went long in a quality stock like AAPL at 96.05. The market then surged later in the day up 400 points bring AAPL to close at 101.89 and it up to 103.30 AH. This position is actually still open with a 6% gain but i intend on selling tomorrow hopefully on a gap open.
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Today was a great day for day trading as there were some decent setup ups to play despite that whip saw environment we witnessed. I went 3 for 4 making some solid gains in STEI, MER and UAUA that were alerted to BLACK SERVICE members in Live Chat as well as real time Email ALerts
Day Trading #1 – STEI
I was following large gap downs on JASO, SOLF, DRYS, and STEI hot out of the gates in the AM but all of them moved to quickly for me to make a sound entry and were risky due to the volatility. STEI was the largest gap down and was moving the slowest so seemed to be the safest and most reliable play if there was a breakout to the upside. As all the other stocks i was watching blew up STEI starting breaking to the upside on the 3rd 5 min candle. Its safest to wait for the 3 or 4th candle to make a gap entry as i detailed in the previous post below which is the 15 minute rule. I alerted Black Service members to go long at 5.29. I exited the position when price began to slow near the 9ema resistance at 5.74
Technical Analysis :
Day Trading #2 – MER
MER was another great trade. I was only able to alert this stock via Live chat as it moved fast and i was glued to the computer screen watching it, didn’t have time to send an email. I entered at 17.14 as price was sitting on heavy support of the 13,9, and 50 ema and was on the verge of a triangle breakout. I exited at 17.97 near $18 resistance. Whole #’s serve as great exit and entry points, especially in stocks below $10.
Technical Analysis :
Day Trading #3 – UAUA
UAUA still has potential to complete the breakout i was hoping for tomorrow but i expect we will see selling accross the market since the short ban on financials will be lifted, i could be wrong though. If price breaks out above 5.58 this could easily head near the next resistance levels around 6 – 6.25. a breakdown below 5.25 and a short could be profitable here down to 4.50 – 5.
Technical Analysis :
FNM was the only failed trade of the day. Went long at 1.17 and out at 1.14 for a very small loss.
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Oct 7, 2008 Day Trading
I came accross two great shorting opportunities today that i tried to capitalize on yet theres nothing more annoying when you find a good opportunity, set up the order, click the short button, and you get a pop-up window that says “Not on the Short List” ……. ugh! I wasn’t able to get shares on either of these.
But in any regards, these are two examples of shorting setups that have a high probability of working in your favor and you should be scanning the markets for more opportunities like these as they arise. Note both of these are day trading stratedgies.
Day Trading Example #1
First example is called “Fading the gap” using the 5 minute intraday chart. This strat only works on stocks early in the morning as you are playing the morning gap. During the Pre-market you scan for the largest % movers that are also liquid stocks so that you can hopefully get some shares. Early in the AM I noticed AMD gapping up 22% which presents both long and short fades. But most gap ups lead to profit taking. I like to call them “Gap to Crap” trades so we’re looking to go short. I use the 15 minute rule with 5 minute candles meaning you don’t execute a trade until after the first 3 candles have been formed which create highs and lows on those 3 candles. A long position is triggered on the breakout above the high of those 3 candles, a short trade is triggered on a breakdown of the low of those 3 candles. You can also buy or short earlier in the pattern trading the pennant/trianlge formation breakdown which is what i tried to do today.
So looking at the 5 min chart of AMD, in the first 3 candles it created a high of 5.60 and a low of 5.10. So you would look to go long on a breakout above 5.60 and go short on a breakdown of 5.10. As sentiment was weak on AMD and traded near the lower boundary of the 15 minutes of trading and then broke down the inner pennant. I tried to short some shares near 5.20 but wasn’t able to borrow any. Price then broke down the 15 minute pattern support and got slammed in the next 10 minutes dropping as low as 4.62 or around 12% presenting a great short term day trading opportunity. So keep an eye on future opportunities like this.
Second day trading example is on UAUA which is shorting multi-day support breakdowns. Looking at multi-day charts is a more reliable way to strong stronger patterns than looking at a 1 day chart of a stock. You will catch higher % moves trading a multi-day intraday chart.
Looking at UAUA’s 2 day 5 min chart price bottomed out 3 times around 6.30 creating a strong support level, yet if this mark is broken it creates a strong shorting opportunity. I tried shorting this stock near 6.25 on the breakdown yet once again my broker didn’t have any shares currently. UAUA then proceded to fall all the way to $5 during todays session presenting a huge day trading opportunity. So as the short selling ban is coming up soon there should be more of these opportunities like this coming up. Keep your eyes open and look for multi-day support levels that could have potential breakdowns.
First week of august has been awesome for the Black Service stock picks as we just closed a big gain on RDN for 60%!!. our positions in AMR and UAUA are rocking and i plan on taking some profits into monday with this 32% gain for UAUA and 17% gain currently being held on AMR. Our other stock positions are looking very healthy as well. Currently for 2008 we are on our way for a record setting return for the year already up 89%!! We should be well over 100% return by 2009.
The Dow chart made a very significant move on Friday breaking out from its ascending triangle pattern which could be signs of a bottom here for the market and the bulls ready to make some more moves. Resistance is still strong around the 11,800 area that we need to surpass.
Technical Analysis :