My afternoon strategy today was relatively simple. I monitored key price (whole numbers, half numbers)/moving avg areas on the SPY. Each time the SPY pulled back, I watched my Trade-Ideas scanner for a big cap name printing strong price action relative to the SPY.
As the SPY would break out of a resistance area, I would load into one of these relative strength plays.
At 229, COF began printing (above yesterday's high) a series of narrow range consolidation bars on the 1min chart. During the period of 229-234, the SPY pulled back approx 90 cents in a much steeper fashion relative to COF flat consolidation. I went long on 236 COF breakout bar/concurrent with the uptick in vol/strong SPY bar (price printing above Wednesday's open). I closed the trade out into strength on the 247 bar as the SPY neared 88.50 price resitance.
2 comments:
BM, nice work on the blog! Just curious...would your scan have picked up the break of 31.00 on COF?
OE,
I have my Trade-Ideas scanner set-up to alert me of a stock making a ten minute high. In that mrkt condition COF was able to make a ten minute high as the broader mrkt pulled back. That's what initially what got my eyes on the COF chart.
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