Thanks for the NVDA trade idea Jeff! Nice down move today. (Dare I say it) Death to NVDA!

Oooo, that sounds...painful. :-)

Be careful with NVDA. It is above the 13-day and 18-day moving average. Unless it breaks below 32.15 area, it will likely stabilize and go higher.

lol, ya ive also got NVDA puts (bought yesterday) where are you looking for it to go? im hoping itll head down to about 29, then we`ll see if it breaks that support there, what you thinkin?

Addicts,

Keep an eye on FDX. Transports are at resistance, and so is this one.

Trader JH
Where I have drawn my support is from the bottom body of 10/31 to the bottom of the body of 11/13 to the bottom of the shadows (wicks) of 11/28 & 11/29.I beileve oil going down. The last candle is an inverted hammer ( could be a PT Cruiser though)lol

Trader JH-

I've got NVDA at resistance and it's about to engulf a shooting star from yesterday. If this thing closes like this or better I'd say this is a dream trade.

SNDK is also looking like a good put candidate. It's just starting to roll over. (That is if you're not already in the trade)

Brett, good luck with that, however the fast line is above the slow line on the MACD(12,9,26). In my experience, bearish patterns usually fail when you're facing a positive MACD.

Wow, tough crowd here. I might as well take the other side of everyone's trades. Long SNDK calls for the same reasons I wouldn't short NVDA. ;-)

Anu-

Regarding your question:

"On price pattern breakouts sometimes by the end of the day of the breakout the price is well above or below the support/resistance. Do you personally find that waiting for a retest is best in these cases or do you enter at the end of the day or how would you in general handle this situation?"

I too have been struggling with this and would appreciate hearing how other traders reconcile this.

Thank you for your time,
Lara

Trader JH,
You're forgetting to analyze the JK on this trade.

FDX is breaking through the 13-day and 18-day today as well. Believe me, I've learned from experience that puts are generally NOT profitable when a stock is above these moving averages.

jym, the JK? I'm new here... LOL. Does JK mean just kidding or what?

Oh, JK = Jeff? LOL.

Trader JH-

Since I'm not a daytrader, I don't use short-term moving averages. I trade price patterns, support and resistance bounces.

Thanks,

Brett

jym,

Im curious also...

Trader JH
C'mon I'm having a great time laughing at all my typo's.

Brett, I am not talking about daytrading. I am talking about 18-day and 13-day moving averages on the daily chart. Intraday these averages may work as well, but I really don't know since I'm not a daytrader either.

Like I said last night Trader JH, there are two sides to every trade and each side has a different objective and timeframe. Bears and bulls living together. We have harmony.

We make money, you make money. Everyone wins!

Cheers!

John

I see a serious tangle here with trading styles, personalities and opinions. Debate is good and healthy. Egos and agendas suck.

We are all the same, we are all different. I think that there is a children's book that has that phrase over and over again.

Jeff, I can't wait for the hammer to drop.

Sorry, I am not trying to step on any toes here, just explaining why I think support and resistance is more likely to fail or hold in certain situations. After all, how do you have an edge if everyone sees the same support and resistance but has no clue if it is more likely to fail or hold?

Everyone sees the same chart patterns and candles, but from what I've noticed, the moving averages seem to be important in determining if these setups will fail or follow through.

I hope everyone makes money too!

Hi Everybody,

Sorry for the off-topic. I'm new here. Great blog. I'm currently with Fidelity, using their ATP and Wealth-Lab platforms. Wealth-Lab is mainly usded for end-of-day system trading, while ATP is more geared toward intraday trading, but personally I've found it clumsy (especially for options trading) and locks up quite often.

I'm looking for a different broker, and heard some good things about TOS. I'm just a bit worried about what could happen to smaller brokerages, such as what happened to ETrade. If I'm not mistaken, even ETrade is much bigger than TOS. I hope TOS didn't invest in mortgage securities like Etrade. Any pointers on your experience with TOS or other good platforms are greatly appreciated.

Thanks,
Kate

Anu and Lara,

On breakouts, I always wait for a retest. I guess that means I'm not much of a breakout trader. But, I like to enter near my exit and I can't do that if the price is far from support.

This is doubly important in high volatility environments, I think. I know that I miss out on some great potential moves, but a lot of times the breakout will retest and I can get the move anyway with lower risk.

KWK is still holding above the "line of Death" for those that care....

Interesting selloff on the solars here. If this holds, it doesn't make them bearish but it does reduce the chance of huge breakouts next week.

EB,

I care about KWK....Thanks.

Trader JH
It does.
In the little while I've been here I've found that its not a good idea to trade against Jeff. (Not that I ever have ;-)

Trader JH,
You didn't step on mine. I actually put the 18 and 13 studies on a new study set. I like moving averages and I usually use the 20 and 30.

When Brett and Jeff are totally on the same page on NVDA, look out...that tells me to jump in with them!

I picked up NVDA this morning. So far so good.

Here comes the Bears...think I.m glad I PUT them out!

I am a newby - I just bought Jan puts on JCP - target is 40

just stopping in on luch for a minute and i see....

CAM & JCP (both off Jeff's list) turning down....SNDK is also

happy friday

I have a small dilemma. This morning I purchased NVDA 32.5 puts around the 33.5 level as well as SPY puts near 149. The NVDA puts, in a single day, have increased 70% in value vs. 30% for the SPY puts. Since my account's under $25,000 I have to be careful to not violate the pattern day trader rule. I've burned 2 of the allowed 3 day trades under that rule.

Do I burn the last day trade for the week closing out the larger NVDA gain and take my chances with the S&P falling on Monday or vice versa? My instinct would be to close the NVDA since it's the larger of the two gains even though I think there's another point or two of downside in the channel.

BTW, regardless of which option is chosen, Jeff has successfully helped me get my portfolio from being -25% down for the year to even... in 1 week. For those of you that are new, I bought some of his recommended readings, switched over to Thinkorswim from Zecco, and switched my trading style from mostly fundamental to mostly technical. It can be done!

jym,
I did, too.

Dan B -

I too care about KWK if it breaks the "Line of Death"...watching it closely this afternoon.

EB,
I was looking at your KWK chart that you posted on the kwk thread. Is your line 49.5, and how thick do you draw them i.e if its going to close at 49.49 you're in and 49.51 you're not? Or do you have some wiggle room either way?

Jorge, you know my thoughts probably, but I would take the money in NVDA and run... It is sitting right on the 13-day moving average right now and it stands a good chance of bouncing on Monday, IMO.

Trader JH:

What are you seeing in CSIQ for the calls?

I also plan on buying a Put on STI - downtrending with a target of 65

stin, I am seeing a high reward play on CSIQ (that admittedly has a higher risk level too). Draw a trendline from the lows of 11/12 through the lows of 11/13 and 11/28. It is really close to breaking that today, but as long as it closes over it, I am holding on. That trendline is in the 15.65-15.90 area today depending on how precise you want to be.

That is the bottom of your channel. To make the top of the channel, draw a trendline from the highs of 11/2 through the highs of 11/14 and 11/19. You can see the upside potential is in the $23-25 area next week.

$22+ is where I would expect this stock to head if it breaks above the old high of $18.88. Nobody knows for sure if it will break out, but holding this bottom trendline today still keeps that possibility realistic I think.

Good luck.

I should have ask a question - Does anybody thoughts about PUT entrys into STI and JCP today?

Gary

Trader JH,

13-day and 18-day moving averages on NVDA? These have been completely useless as support and resistance lines on NVDA going back for a year. Besides, has Jeff ever showed a particular warmth towards MA's? Be careful with those! NVDA is a beautifully trending/channeling stock, and will be until the channel is broken. It could re-test the upper channel line next week, but that's okay, because unless it's broken, the pattern still remains. EB/Raimo made a point of this yesterday.

Here's a few put plays I like on stocks under the 13 and 18-day moving averages:

NFX, UNT, TSL, EV,

oh geez, not a hammer drop. I'll find out 3 more things I did wrong today.

Trader JH

Do you think the spread between Bid and Ask EV(on the options) are a little to much?

Gary

Mike, these averages act as support when the fast line of the MACD(12,9,26) is above the slow line. These don't always act as support. But they generally act as support with the type of MACD we currently see on NVDA.

Good luck.

Kate,

Think or Swim recently sent out a notice that all of their investments are in U.S. treasuries and they have no exposure to mortgages or mortgage backed securities. They are very informative and will answer any questions like that, you should call them.

Kate
Trade the Stock, not your portfolio.
I bought 10 NVDA and JCP puts early this morning...(heaven)
I have a feeling we are going to go a little further downward early next week. what do you think?