AVP nice daytrade with a tight stop

AVP is a buy at this price at $21.78. After chopping around for several days AVP finally made a strong move that it is ready to try a relief rally. I'm looking for AVP to get back to it's daily 20MA around the $24 area over the next few days. If you want an aggressive stop you may place it below the $21 area or if you want to give yourself alittle more room you may place it below $20.

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I marked the entry with a green arrow and possible stop areas with the red arrows. You can learn more about my strategies in the swing trade lessons section.

QQQ following through with our rally

The QQQ's is following through with the rally that we have been expecting. The QQQ were very quiet in the morning session rallying late in the day to close the day at it's high. I wouldn't celebrate the rally just yet. We have some major resistance that will be coming up in the $56 area so I would expect that to be the first test. I wouldn't be surprised to see the QQQ's pull back alittle here which could actually be a bullish sign if it could create a higher low.

We want the QQQ's to break above and hold that $56 area in order to get momentum to test the highs. If we hold above we could look to test the $59 area once again. I marked the $56 resistance area with a red arrow.

I would look to take alittle profits on any longs if we get another day or two of rallies without any pullback.

Find out more about this QQQ Daytrade.

QQQ's weak rally

The market pulled off a quiet rally today without much volatility. This week was one of the markets most volatile weeks in history which made it very difficult to get a read on the market. We got a small gap this morning that didn't get much follow through. I still think we could continue with this bounce that we are getting in the market but I wouldn't be surprised if we chopped around here while the market consolidates the extreme volatility we have been experiencing. I believe on the top side we could get near the $55 area which could serve as a strong resistance area going into an options expiration week.

The market still seems weak and I believe it's still to early to decide which direction the market wants to go to open swing trades. Daytrades are the best way to go for now. You want to stay nimble until the odds move back into your favor and you have a good feel on the market.

Find out more at investanomics.com

Failure to hold a break on QQQ

The QQQ's has failed to hold on to highs after the break of the $53 area. This shows there is heavy selling pressure and it looks like the market could have a rough time recovering losses. I was looking for swing plays that could take advantage of a market bounce and couldn't find any good risk/reward trades. The market is just to volatile to take swing trades at this point so daytrades come in handy in staying nimble and bringing in profits. I posted a couple day trades on SODA and CREE earlier today that worked to perfect. This type of enviornment is where it pays to be an all around investor and trader taking advantage of the different waves of opportunity the market provides.

I believe if the market could break and hold above the $53.50 area in the QQQ's, we could see the market try to test the upper resistance near $56. Any failure and break below $50 in the QQQ's at this point is a very bearish sign which will bring alot of panicked sellers into the market since at this point. There are many stops sitting below the $50 area and a break of that area will change my bias to bearish.

I definitely have my shopping list out and looking for opportunities to take advantage of this move in my long term trades. This is a great time to watch those penny stocks and target those value plays.

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Money in the bank! Solid day on SODA and CREE Summary

Daytrades were posted in real-time with updates. I don't usually like to post daytrades but I really liked these plays and felt that they would be excellent lessons in how to daytrade correctly while seeing them unfold before your eyes. So you get the opportunity to see what I see at the same time as the trade unfolds. It is very difficult to manage a trade and update the blog in real-time while taking pictures so I tried my best to update quickly.

Now to the summary:

CREE - Profits banked at $36.31 banking an average profit of 3X risk. This position fell alittle short of our 90 cent target area and I was to busy to update the trade here on the blog so I will just use the last post to update the blog which was when I moved the stop to $36.31 if you were following my techniques you have gotten out at $36.55.

I highlighted in green the arrows I was looking at for a trigger. The blue arrow represents the trigger and the red arrow was when the final lot was exited.


SODA - Exited the final piece at $46.95 bringing our profits to an average of $4/share. This is about 1.3X our risk but had an opportunity to trail it tighter when you hit $48.48 but again wasn't able to update the trade in the blog so I just used my last post to update the trade here.

The blue arrow was the trigger and the red arrow was when the final trade was exited. It took us two looks until we got the right trigger since the first look was invalidated by taking out the low first before rallying which is my first post on this trade.

Like my comment yesterday on the market it is not uncommon to see a retest of the lows in stocks as well as in the market before the rally comes. The key is knowing which one to take.

I base my returns off multiples of risk because I believe that if I'm right just 50% of the time but average more than 1X my risk then over time I will make more money. So if I could get 2X or 3X risk on half my trades then I could make good money.

Learn these strategies and more at investanomics.com

CREE Profits in the bank on a nice daytrade

Banked 3x risk on CREE with a tight stop. move stop to breakeven at 36.11 sold 3/4ths of my position in the high 30 cent area. On these type of breakout plays I like to use tight entries to maximize returns. You have to let your winners run and worst case scenario the rest of the trade takes you out breakeven. Close the position near the end of day if our 5 min trail doesn't take us out.

There's a reason why I watched CREE all day to get the trigger and why the breakout was successful. Learn the techniques at investanomics.com

UPDATE:

Take profits on rest of position in CREE in the $46.90 - $47 areas stop now $46.31

SODA stop update

Move the stop on SODA to $45.90 below the 5min pivot locking in at least another $2 on our last quarter position left. Looking to take the rest of the position around the $49-50 area.

Wanna learn to trade this volatile market check out investanomics.com to learn more.


UPDATE:

Move SODA stop to $46.95 to lock in profits