CAR gapped up 11.63% and continued higher the first two bars of the day. CAR paused and consolidated the next two bars creating the first pullback. When CAR traded over the second pause bar at $15.01, the long trade was triggered. CAR traded up to a high of $15.98 for a maximum reward/risk of $0.97/$0.13.
F gapped down 1.47% and continued lower the first bar of the day. When F traded above the high of the second bar of the day then quickly reversed below its high, there were trapped longs and the short trade was triggered at $11.40. F traded down to a low of $11.15 for a maximum reward/risk of $0.25/$0.05.
CVE gapped up 0.17% and continued higher the first two bars of the day. CVE paused and consolidated the next two bars, and traded below the third bar of the day trapping in shorts. When CVE traded over the second pause bar at $35.17, the long trade was triggered. CVE traded up to a high of $35.88 for a maximum reward/risk of $0.71/$0.14.
ITMN gapped down 9.32% and continued lower on a disappointing earnings report and analyst downgrade. ITMN paused and traded in a very small range during the second bar of the day. When ITMN traded below the low of this small pullback bar, the short trade was triggered at $10.80. ITMN traded down to a low of $9.66 for a maximum reward/risk of $1.14/$0.13, a whopping ten to one ratio.
CHK gapped down 0.51% and continued lower on the CEO’s financial shenanigans. When CHK traded above the high of the second bar of the day then quickly reversed below its high, there were trapped longs and the short trade was triggered at $17.30. CHK traded down to a low of $16.78 for a maximum reward/risk of $0.52/$0.12.
LEN gapped up 1.35% on strong housing data and continued higher the first 10 minutes, and then paused for two bars. The long trade was triggered when it traded over the fourth bar of the day at $26.66. LEN traded to a high of $27.43 for a maximum reward/risk of $0.77/$0.18.
RHI gapped up 8.53% and continued higher the first 5 minutes of trading on strong growth in their earnings release. After the first bar there was no follow thru to the upside and it had three straight red bars. The short trade was triggered when it traded below the fourth bar of the day at $31.04. RHI traded sideways to down for the remainder of the day to a low of $30.44.
Caterpillar gapped down 1.51% as revenue growth did not meet wall street estimates. It continued lower the first 10 minutes of the day and then traded sideways for 85 minutes. When it broke below the 30 minute low of $105.20 at 8:07am PST the short trade was triggered. CAT traded to a low of $102.30 for a maximum reward/risk of $2.89/$0.40.
Agilent Technologies gapped down 2.18% and continued down with a bearish first 5 minute bar of the day. The next two bars were inside consolidation bars, with the third bar inside the first two bars of the day. When the fourth bar of the day traded above the third bar of the day, many traders bought and became trapped longs when there was no follow thru to the upside. When the fourth bar closed below the high of the third bar, the short was triggered with a stop above the high of the fourth bar ($40.03). Agilent traded down to a low of $39.15 for a maximum reward/risk of $0.78/$0.10.
SLB gapped up 4.18% and had a strong first 5 minute bar. But after that it traded down the entire day, also known as a one green and crap. When SLB traded below the fourth bar of the day at 6:51am PST, the short trade was triggered. Profits on half or all of the position can be taken at the low of the day and reshorted around VWAP. SLB traded down to $71.61 for a maximum reward/risk of $1.73/$0.40.
