Daily Trader: Trading Ideas For August 22nd, 2014

/ August 21, 2014

Following are our trade ideas for our Daily Trader portfolio for Friday August 22nd, 2014. These are short term trading ideas that are normally closed either the same day or in next few days. Trade nimbly.

  1. Bank Of America Corp. (BAC)
    • Direction: Long
    • Entry: 16.28
    • Stop: 15.82
    • Target: 16.55
    • Pattern: Expansion Candle / Resistance Break

    BAC_140820

  2. Citigroup, Inc. (C)
    • Direction: Long
    • Entry: 51.32
    • Stop: 50.34
    • Target: 53.30
    • Pattern: Resistance Break / Expansion Candle

    C_140820

  3. eBay, Inc. (EBAY)
    • Direction: Long
    • Entry: 57.15 or ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 54.96 or below ORB
    • Target: 59.40 or 2 points
    • Pattern: Resistance Break / Expansion Candle

    EBAY_140820

  4. Health Management Systems, Inc. (HMSY)
    • Direction: Long
    • Entry: 23.67 or ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 22.48
    • Target: 24.75
    • Pattern: Resistance Break / Expansion Candle

    HMSY_140820

  5. Hormel Foods Corp. (HRL)
    • Direction: Long
    • Entry: ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 1.5 points from entry
    • Target: 1.5 points from entry
    • Pattern: Expansion Candle / Potential Resistance Break

    HRL_140820

  6. NCR Corp. (NCR)
    • Direction: Long
    • Entry: 34.70
    • Stop: 33.96
    • Target: 35.50
    • Pattern: Expansion Candle / Down Trend Line Break

    NCR_140820

  7. Sally Beauty Holdings Inc. (SBH)
    • Direction: Long
    • Entry: 27.92 or ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 27.18
    • Target: 28.48
    • Pattern: Resistance Break / Expansion Candle

    SBH_140820

Previous Trades Update:

Four or our trades triggered on August 21st. If you have not already closed them then update stop and target levels.

  • AEO (long) – update stop to 12.96 and target to 13.52
  • ANN (long) – update stop to 37.89 and target to 39.41 (Note: ANN will announce earnings before open on August 22nd)
  • LOW (long) – modify stop to 52.09 and target to 52.94
  • NOAH (short) hit that target and closed for 3.2% gain

Trades Triggered on August 20th.

  • FFIV (long) gapped up and opened above our modified target and closed for 1.0% gain
Please Note: These are short-term trade ideas that we normally close in a day or two. Some of the trades are held longer based upon the price action. If there is abnormal price action then act accordingly to either lock-in the profit or limit the loss. We do send out alerts if there is any abnormal price action. Remember to check this site for alerts and further updates.
  • We usually avoid taking a position if there is big gap-up or gap-down.
  • If there is a gap-up or gap-down then if in the first half hour there is a snap-back or pull-back to our original entry then we take that unless the price ran away too much and then snapped-back or pulled-back
  • If there is no snap-back or pull-back in the first thirty minute then we wait for the ORB (Opening Range Break - a break above or below the first thirty minute candle - in the original trade direction
  • If the entry is based upon the ORB then the stop is usually beyond the other end of the bar.
  • Remember to position size based upon your risk-tolerance
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