SLB was a great short when it traded below the 7:40am PST signal bar low of $71.35. This was the third push up off the low and traded through the 20 EMA (red line). The trade up the the 15 EMA (cyan line) was not a good short because the rally had 4 straight green bars into the EMA. It is always a higher probability trade if the rally into the EMA has at most 3 green bars in a row, and even better when it is only two bars in a row. SLB traded down to $69.93 for a maximum reward to risk ratio of $1.42/$0.34.
Members of Daily Stock Plays were alerted at 6:40am PST, 10 minutes after the open, that KEG was a Stock In Play. Our proprietary daytrade finder recognized KEG with a bearish intraday pattern, a bearish trendline break on the daily chart, and significantly higher volume than average for the beginning of the day. Notice the shallow slope on the weak rally into the 15 EMA. This indicates weak buying pressure. Once the stock broke below the signal bar low (8:15am PST bar) of $15.97, it traded down to $15.33. With the stop above the signal bar at $16.02, this was a low risk high reward day trade.
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TIF (Tiffany & Co.) was picked by the Daily Stock Plays proprietary stock screener (free one week trial membership) as a stock in play at 6:40am PST, 10 minutes after the open. News of top line trends unlikely to have improved is usually a good candidate for a short trade. TIF had strong early volume and a strong bearish close on the first 5 minute bar, quickly trading below the previous day low and triggering a possible evening doji star pattern on the daily chart. TIF had a weak rally up the the 20 EMA (7:35am PST bar), and when it traded below this bar the short was triggered. TIF rallied back to $69.42, very close to the signal bar high stop of $69.46, but later in the day sold off to a $68.71 low of the day.
RVBD (Riverbed Technology, Inc) was picked by the Daily Stock Plays proprietary stock screener (free one week trial membership) as a stock in play at 6:40am PST, 10 minutes after the open. News of slower growth is usually a good candidate for a short trade. RVBD had strong early volume and a strong bearish close on the first 5 minute bar. After the stock broke below the previous day low, it pulled back to test above the previous day low and stopped at the 15 EMA (7:05am PST bar). As soon as RVBD broke below the 7:05am PST signal bar, the short trade was triggered. It was a solid trade to hold for the entire day. It never even came close to the signal bar high stop price.
Daily Stock Plays Members were alerted of this trade before it triggered. Our proprietary stock screener recognized SINA with a bearish intraday pattern and bearish daily chart pattern, and significantly higher volume than average for the beginning of the day. The S&P futures gapped up 8 handles at the open and SINA opened down 1%. Whenever you see relative weakness on the open, look for a pullback into the EMA or sideways consolidation. SINA did both when it consolidated sideways for 45 minutes. The trade triggered at $116.99 when it broke the signal bar low shortly after 7:25am PST and dropped sharply to $110.32. The final maximum reward/risk was $6.67/$0.67.