An NYSE Scalper's Tale - A Trader's Diary

Monday, June 19, 2006

Big Fat Juicy Level

Gross: +$1,185.07
Net: +$1,066.82
Loss From Top: 0
Trades: 78
Shares Traded: 106920

Stocks Traded Today (net profit/loss):
Hewlett Packard (HPQ): +$463.10
Micron Tech (MU): +$262.65
Walmart (WMT): +$198.81
JP Morgan (JPM): $174.77
Bank of America (BAC): +$100.75
Citigroup (C): +$9.16
Corning (GLW): -$62.11
Home Depot (HD): -$74.73

A big fat juicy level is a level that is clearly evident that it will break and when it does break, there will be good follow-through.

And today there was a big fat juicy level on Hewlett Packard (HPQ) at the $33.50 level. HPQ was uptrending, and the Futures were also uptrending. The size at the $33.50 was 3000+ on the offer. What made it clear that it was going to break was that big sizes started appearing on the bid (several 500+ size appeared on the bid) and given that HPQ was exhibiting strength most of the morning, you could just tell that that juicy level was going to break.

Too bad I was too chicken to hold my long 10,000 share position for a little longer...I could have had a 20-cent or more winner (that'd be $2000 in my pocket!). I ended up taking only $460 profit on that trade.

Overall, today I stuck to my rules and focused on the main points I stressed yesterday. Nothing really spectacular. The only really good thing about today was that I didn't make any bad trades (trades in which I lose more than $100).

With today in the books, I have officially surpassed my best month. I am currently up about $7,400 so far this month and there are 9 trading days left to go. Looks like my goals for this month will be achieved (multiple $1000+ days, break the $10,000 mark by month end).

Again, in case you missed it, yesterday I started a new blog. For those interested in learning Mandarin through music, movies and TV, check out my new blog (see the "Links" section to the right and click on "Mandarin Immersion"). On it, I'll have reviews on Mandarin music artists, movies and TV shows. I'll recommend sites for learning Mandarin as well. I won't update it as often as this blog, but it's just motivation for me to keep up my learning of the language.

Good Trades
9:32AM - Micron Tech (MU) opened and immediately started going up. There was some big size travelling up on the bid, so when it reached some big size on the offer, I hit it and went long 6000 shares. Got out as follows: 1-cent winner (1000 shares), 2-cent winner (1000 shares), 3-cent winner (900 shares), 5-cent winner (1100 shares), 8-cent winner (2000 shares) ($272 profit before fees).

10:37AM - Hewlett Packard (HPQ) and the Futures were uptrending when HPQ approached it's "Big Fat Juicy Level". When it was about to break, I hit it for 10,000 shares. As soon as the level broke, HPQ popped up, however I started getting scared because the Futures looked like it was going to start tanking. I exited my position, but was angry at myself for getting out too early - HPQ ripped up again as soon as I punched out my last 2000 shares. I could have had a 25-cent winner. I got out as follows: 4-cent winner (6000 shares), 5-cent winner (2000 shares), 6-cent winner (2000 shares) ($460 profit before fees)

Bad Trades


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