Volatility is an online stock traders best friend. This market sure has it. Here’s a few stocks I’m trading today.
PWRD is a recent IPO with plenty of range to trade. The stock has retraced 50% of it’s initial upswing. Wait for a higher high on the daily chart, or trade intraday.
Here’s a chart as I write this intraday. PWRD is in an uptrend on the 5-minute chart after trading a higher low, and a higher high. You can see the battle with the 50 ma in red here. I bought the higher high.
The stock LEAP – Leap Wireless International Inc. has touched it’s uptrend line on the daily, and probably took out some stops under the 50dma. Similar to PWRD, I’m trading off the 5-minute chart. A higher low and high set the uptrend. I did however try to game this stock three times before it set the trend. I was stopped three times in a row. Ouch! I’m currently back in at the higher high.
Stop is day low for PWRD, and 86.76 for LEAP.
One big challenge with these trades is a fight against intraday charts that have their moving averages heading lower. It’s much easier trading with the trend. I’m trying the trades though, because the Nasdaq has put in a double bottom intraday, and both charts are due for a turn after consecutive down days.