Daily Trader: Trade Ideas For August 6th 2014

Our Daily Trader portfolio scan generated following trade ideas for August 6th, 2014. These are short-term trading ideas that are normally closed either the same day or in next few days.

  1. Embraer Aircraft (ERJ)
    • Direction: Short
    • Entry: 36.91
    • Stop: 37.92
    • Target: 35.92
    • Pattern: Expanding Candle
  2. Target Corp. (TGT)
    • Direction: Short
    • Entry: 57.75
    • Stop: 58.92
    • Target: 56.63
    • Pattern: Expansion Bar / Gap Down
  3. Two Harbors Investment Corp. (TWO)
    • Direction: Short
    • Entry: 10.05
    • Stop: 10.43
    • Target: 9.95
    • Pattern: Expansion Bar / Gap Down

Previous Trades Update:

Only one of our trades triggered on August 5th. If you have not already closed it then modify the stops and target levels.

  • INSM (short) – modify stop to 13.03 and target to 11.92

Trades triggered on August 1st:

  • LNKD (long) closed with 1.4% gain
  • WU (short) lost 1.0%

Please Note: These are short-term trade ideas that we normally close in a day or two. Some of the trades are held longer based upon the price action. If there is abnormal price action then act accordingly to either lock-in the profit or limit the loss. We do send out alerts if there is any abnormal price action. Remember to check this site for alerts and further updates.
  • We usually avoid taking a position if there is big gap-up or gap-down.
  • If there is a gap-up or gap-down then if in the first half hour there is a snap-back or pull-back to our original entry then we take that unless the price ran away too much and then snapped-back or pulled-back
  • If there is no snap-back or pull-back in the first thirty minute then we wait for the ORB (Opening Range Break - a break above or below the first thirty minute candle - in the original trade direction
  • If the entry is based upon the ORB then the stop is usually beyond the other end of the bar.
  • Remember to position size based upon your risk-tolerance
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