Trading PWRD LEAP

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.

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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.

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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.

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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.

2 thoughts on “Trading PWRD LEAP”

  1. I think that this volatility is here to stay for quite a while. Certainly a traders friend is this kind of volatility, some amazing changes in the market in a matter of minutes this week.

  2. Just today, a trader friend asked me, “does the market rise 150, or fall 150”.

    I said, “Both.”

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