Peter process

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With some down time before the big turkey fest tomorrow, I wanted to put together another segment to show how I traded JDST today given gold was dropping premarket. I trade ETFs differently than stocks and will give more how-to details later next week time permitting.

In this trade, I did what I would do for a stock trade but given the volatility of ETFs, one different thing I did was primarily use a 30 min chart (and 60 chart to confirm versus a 60 primary and daily to confirm) to mark support and resistance levels with the horizontal line tool in red as seen in pic4 below. I circled the HLB bars (use CTRL+B until you see them) to mark the common contacts of the high and lows looking back but not too far back. I tend to mark these in 25 cent or quarter increments as these are meant to be a guide and not specific targets.

After watching the premarket action and listening to HB, when the market opened I used the trend line tool to draw lines marking the high and low candlestick body points to define support and resistance from 9:30am to 10:15am. Generally these lines can be drawn to 10:20am but I seldom ever enter a trade using this trading strategy after this time.

As you can see from pic5 below, I entered the trade and then followed it until it broke the 10MA which was confirmed by the Stochs 15,3,3 cross down. I did not use a stop as I was eyeballing it on this trade. I also did not wait for a break of the 21MA as the climb up was not steep as I commented in another segment where I traded DSW.

I then decided to do a short trade given the Stochs 15,3,3 cross over and follow through going down. After entering this trade, given what I saw ("trade what you see"), I put a sell limit order in above the resistance line to cover all shares.

I could have traded long again but it was almost noon the day before Thanksgiving and I try to wind up before noon.

How did I do. I traded 2500 shares long at $39.95 (which is above my normal range) for a profit of about $1,250 and then traded 2500 shares short at $38.85 for a profit of about $2,500. Total profit amounted was about $3,750.

Again, this is a simple day trading strategy. The key is too pick your trade by getting ready listening to HB, going to nasdaq.com and barcharts.com (from which I found nothing today).