Nicole: The only "standard" pull back that I play almost exclusively is the AM pullback between 9:30 - 10:00 AM. Especially for gap plays, this is the time where the MMs will pull the stock back and shake out weak hands in an attempt to get shares and allow the strength to run the issue after 10:00 AM...normally somewhere around 10:10 AM.
What to look for? For me, I look for a basing price and if you are following a candle chart minute by minute, I look for the subsequent minute by minute lows, followed by successive upticks. Everyone has their own pattern and system...sometimes I just watch for a basing price or price that I feel is good vs. the news that is yet to come.
For instance NAVR, I am not that worried about eeking out every 1/16th on the stock because I know the news, when out, could very well blow this stock past 25. But if I feel I can shave a point off my price, like I should have today, I will sell and buy it back between 10:00 and 10:30. NAVR has been following this same pattern almost every day, gap....pullback, slow rise into the close, and repeat the next day. The thing that scares me is if I try to shave a point and the news comes out when I am not watching or when my focus is turned, and I lose 2 points trying to get back in....but those are the risks.
There is also a lunch time pullback that many play. I do not usually play this pullback, strictly speaking. As I mentioned before, I almost always let the price action of the stock dictate my action and whether I buy or sell. Poet plays the lunch time pullbacks very well and you might dig her for some information on how she plays them.
Good luck and I hope this helps.
TJ |
