— Jake Huska (@MarketPicker) Mar. 31 at 09:29 AM
Today (3/31/16) was a slower day in the market. I had a few names that I was watching, but based on what I was seeing pre-market, I knew I needed to be patient and more selective with the setups I took.
Medivation ($MDVN) gaped up about 15% yesterday in the after-hours after talks of a potential takeover. As you can see in the 15 minute chart below, $43 was a level I was watching as shorter-term resistance. I didn’t feel I had a huge edge below $43, but I set alerts above $43 and below $42. I thought there could be a few points on the upside above $43 based on the daily chart (see below).
Genocea Biosciences ($GNCA) was gaping up over 50% today after reporting positive 12 month efficacy data from Phase II trial. As you can see in the daily chart below, I had several levels that I was watching: I had $5 as support; $6.40 (the pre-market highs), $7, and $7.80 as resistance; I also had $5.50 as my “inflection” level, which was the level that I personally needed to see the stock get above in order for buyers to regain control (sellers were in control pre-market). You can see my trade management in intraday 5 minute chart below.
Finally, I was watching Acadia Pharmaceuticals ($ACAD) as a Second Day Play. I made a nice trade on the short side the prior day for a Gap Fill Trade, and today I was watching that gap fill around $25-$25.50 (see 15 minute chart below). You can see my trade management in the 5 minute chart below. Notice that I took an initial loss trying to play the long side but got back in later in the day. The shorter your timeframe, the more often you will be stopped out simply because you’re making more trades. You will be stopped out and take losses all time time, that’s part of the game. But you can always get back in a trade if it sets back up again.
There are days in the market when you know there will be plenty of trading setups and opportunities, while there are slower days when there isn’t that much moving. Earnings season is about to start back up again, so it’s important when there are slower days in the market to be more selective in order to “save some powder” so to speak.
Thanks for reading. Please let me know if you have any questions or comments.