With today’s volatility, a few online stock trades popped up on my radar. I really don’t care if the market is going up, or down, as long as it’s doing something. Both QID, and ANDE caught my attention today, because I generally always watch the Ultrashort QQQ ProShares - QID, and saw Anderson’s Inc - ANDE, because it’s on my watch list.
I sort my watch list by dollar change, to pick out those with relative strength. ANDE had it early.
QID had a textbook 5-bar pullback before exploding out of the trading pattern. This ETF is bought at the higher high, and a stop is placed under the low. Trading that setup gives a risk of less than a dime with a potential 16R trade. Of course, the prudent choice is to sell in partials on the way up using either a pivot, or trailing bar stop-loss method. So you won’t realize the 16R, but will have one hell of a trade regardless. Let me point out the two inside bars that formed on the way up. That consolidation provided enough buying power for two more strong bars higher. Watch for little clues like this during battle.
ANDE jumped off the morning bell with the bulls running. A seven bar pullback to the intraday 20 moving average on the 5-minute chart looked like a decent spot for a trade. Buy the higher high, and set a stop below the day’s low. I suppose I could have used that small little bar as my risk, but that was too small for me at the time. I had the QID trade providing a higher return for R, so went conservative. Also, this stock has less volume, and trying to sell a bunch of shares when a stop hits is next to impossible on thin stocks sometimes. One aspect of the daily chart that helped my bullish posture was the wide range green bar last week that traded above that prior wide range red bar.
