Supershort: Failure at Key Levelon Open + Held Bid DropsKMayTicker: CRUSDate: Wednesday, April 17, 2013
Big PictureThe market has been unusually volatile over the lastseveral days. SPY dropped precipitously with thecrash of gold on Monday, but recovered most of itslosses yesterday. However, this morning SPY openedbelow yesterdays trading activity, and spent much ofthe day trending lower. This move puts SPY back intothe 153.7 – 157 price band that occumpied most ofMarch and early April.
ADV: 2.78 millionATR: 1.02FS%: 12.34β: 0.65Cirrus Logic, Inc., a fabless semiconductor company,develops signal processing integrated circuits (ICs)for audio and energy markets. A major customer forCirrus is Apple.
Long-Term TechnicalsLong term chart, annotated.
Trade ManagementToday stock snapshot, annotated withexecution and possible execution details.
Trade ReviewMake it Better: Didnt trade with enough size here.Should have been more aggressive when theoriginal 25c buyer dropped, when 19 dropped, andwhen the last 33c buyer dropped.
Trade Idea18.50 and 18 were important levels today. I thinkthere is a good opportunity to make a short tradeif CRUS pulls into 18.50, or if it spends timebelow 18 and turns that support level intoresistance.
Sector Play: Hold Below Pre-market LowGDXVC4/15/13
Big PictureThe SPY trended down from 158.00-155.50
Intraday FundamentalsMining stocks are taking a bit of a hiding followingChinas slowing GDP growth and the sell-off inprecious metals.ATR: 1.16ADV: 17.1MSF%: 8%
30.00 was a very clean definedlevel in the premarket
Trade IdeaGDX seemed to be the best set up in the premarket soit was the metal stock I wanted to focus on first. Itwas supporting 30.50 a few times in the premarketas GLD was falling. When it finally dropped I tookthe opportunity to begin my short position.
Begin short position as GLD isfalling and GDX drops 50csupport levelAdd whenholds below40cCover halfinto 30.00Add onto short against 10cwhen begins to hold belowpremarket support at30.00Cover some intotrendline breakAdd back onwhenconsolidatesbelow previoussupport at 80cCover most whenbreaks downtrendand approaches thewholeFlat when makesdouble botom andthen new high above40c
Trade ReviewIt never held under 30.00 long enough for me to reallysize up into the position. I also could have easilybeen much bigger in the pullback to 80c. Overallthough good job holding it throughout the move andfeeling comfortable shorting in the premarket
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