UPDATE ON TODAY'S TRADING for May 23.
We started the day off on a very positive note by realizing over 8 points of profit from our overnight positions that we held from Tuesday night. As planned, we covered half the share size of each of our overnight short positions in the premarket and right at the open. Then we set trailing stops on the remaining half of the size. This yielded us a total of about 8 points profit from overnight trades in EXTR, JNPR, DIGL, RFMD, and BRCD. We also closed the remaining portion of our KEI swing trade for a one point profit.
During the morning session, the markets provided us with great opportunities to be short since we finally had a steady intraday trend. The volatility provided us with more trading opportunities than we have seen during the past few days, and we took advantage of that. The mid-afternoon session was pretty uneventful, as the market just consolidated near its session lows for most of the afternoon. However, the consolidation near the lows also indicated to us that we were likely to go lower later in the day, so we took advantage of that and got short before the selloff that started at 3:00 pm EST.
During the day, we had profitable intraday trades in DIGL, MLNM, HGSI, and QCOM (all short). We only had minor losses today, which included a 30 cent loss in ONIS and a 7 cent loss in CIEN (our only longs we attempted). Including the two losing trades, we yielded about 3 points profit from our intraday trades, which gave us a total of about 11 points profit today (including the overnight trades we closed).
The sector analysis we posted last evening (post #87) was a big factor in determining our trades, as we profitably shorted the biotechs, which we expected to be weak today. We also took an overnight trade in XOM short, based on the weakness we predicted and subsequently saw in the oil sector. We have about a 1/2 point profit on XOM as we take it overnight. We are also taking DIGL short overnight from an average price of $54.08, so we also have a nice profit buffer on that one and expect a gap down in the morning.
The DJX (Dow) puts that we bought yesterday at $1.75 are working out well for us due to the Dow's weakness. We are up 65 cents on that trade since our entry, and we continue to hold them overnight. We expect the Dow to retest its next support level of 11,000 within the next few days. This will provide us with a chance to sell our puts for a great profit.
So, the market provided us with the volatility and intraday trend necessary to make profits, and we took advantage of that today. All in all, a pretty exciting day for us.
Trade well,
Deron Wagner
General Partner
intradayinvestments.com |
