Long and short ideas from yesterday

Market Comment

Extremely bullish breadth indicated likelihood of correction. We saw that today.

However the Indexes are sideshow. We need to focus on underlying setups.

As you will see there were many good bullish setups today.



larsdoc said...

Hello Pradeep, I often end up with many long/short ideas for afternoon swings, but I'm always struggling with being able to choose between them. Do you have any suggestion on how to prioritize a list like the one you have posted here?

Pradeep Bonde said...

Biotech always first priority.

If small account select one with lowest floats

For large accounts select highest priced

SmartFox said...

Great setups, thank you !
Only question I have regarding setup of the stock BIS. Here we see that the TI65 seems bearish over the last periods , still we now have a 4% long breakout.
Do you still take these kind of entries also we face a bearish trend lately ?


Pradeep Bonde said...

Yes I still take them

larsdoc said...

Thank you very much for your answer on prioritizing setups Pradeep.

I'm a part time trader, and I do my SA analysis and momentum breakout scans (4% and $4) in the afternoon. I have been struggling with finding good r/r setups.

In your videos you recommend setting stoploss at the low of day for momentum setups (4% and $4 breakout). With a win rate of say 50% this means that the r/r needs to be 1:2 to break even. When I look how the posted setups have performed after 4 days, only very few have reached this r/r. How do you handle the r/r when choosing which momentum setups to enter?
Would you recommend setting profit targets or trailing stops for swing trading momentum setups?

Thank you again.

Pradeep Bonde said...

I no more use low of the day stops. Most stops are half of the b/o day gains to start with. Then once it is breakeven I trail with a stop. Some get stopped out for small loss, smoe get stopped out for small gains, some continue to go up till trailing stop is hit.
Also i do not buy every breakout, I only buy the one with extreme momentum or low floats.

larsdoc said...

Thank you again Pradeep, I'm very grateful for your guidance. I will continue to study this phenomenon.
I have a few additional questions just to make sure that I have understood you completely, especially since I'm a part-time trader and only will be able to trade in the afternoon.
Do you turn on the trailing stop as soon as you are positive on a position?
How close do you prefer to set your trailing stops?
When you refer to extreme momentum, are you referring to the 4%/$4 breakout with 3LYNCH criteria and TI65?

Thank you!

Pradeep Bonde said...

Trailing stops I put in post entry. Trailing stops I use range from 25 cents to 5 dollar based on price of stock.
I enter as and when I find a trade , many entries are in first 30 to 60 minutes so my stops can quickly be moved to break even. Plus I do lot of anticipation so many b/o I am in much quicker than those entering later in the day or next day.

Maximum momentum as calculated using TI65 value. Stocks with TI65 above 1.20 tend to make explosive moves

DMertch said...

What would you recommend the float be under for smaller accounts? Under 100M or 50M?

Pradeep Bonde said...

30 million below