In the Monday night video with trade ideas for today, it was suggested that ATI was a good long swingtrade candidate on strength above Monday’s high of 1922 REVIEW THE VIDEO HERE
On Tuesday morning, the stock opened weak and continued to go through the suggested stop level, thus ruining the initial risk reward. 15 minutes after the open I messaged in chat “ATI off the list.” The stock was removed from the list for consideration because the setup we observed the evening before had changed and the momentum was lower at that time of day. There was no reason to expect the stock would turn back up as it was below the declining VWAP.
The chart above is constructed with 2 minute candles, this is not the chart we used to come up with our plan (that was longer term and explained in the video.) The yellow outlined part shows the suggestion from our spreadsheet and it is placed above yesterday’s price action on the chart. Today’s price action starts with the gap lower.
At 11:06AM I messaged “it would be foolish to buy ATI above 1922, dont do it.” I felt compelled to mention this because some people may have been thinking it was still a buy. One of our CARDINAL RULES is not to CHASE! The stock had just run 80 cents (4.35%) in just over an hour, buying here would be chasing!
Everyday, the guidelines below are on the sheet with our ideas. It seems that many people never read them because they continually ask me if I like a stock for purchase and I look at it and see a declining 5 DMA, or I see a stock which is up 15% in the last three days…
Not everyone asks these question. In fact, MANY people have done a GREAT job of learning and implementing these common sense guidelines into their trading and they are more profitable for it!! If you are one of the people who still fights the market, WHY? WHY make it so difficult for yourself?