Daily Trader: Trading Ideas For August 11th, 2014

Following are our trading ideas for our Daily Trader portfolio for August 11th, 2014.These are short-term trading ideas that are normally closed either the same day or in next few days. Friday, August 8th was major up day for the market. Our strategy follows momentum and breakout stocks. Hence, we have many long ideas for Monday. Many of the stocks were in oversold territories and short covering may have given an upward thrust to them. Some may have follow-through on Monday and some may have very small. So trade with caution.

  1. Big Lots, Inc. (BIG)
    • Direction: Long
    • Entry: 46.21 or ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 45.72
    • Target: 48.06
    • Pattern: Expansion Candle
    • Note: Major resistance at 47.21. BIG is trading near all time high. Previous visit to all time high of 47.2195 on 27-Mar-2012 was followed by a gap down on March 29th and then a second bigger gap down on April 24th. It crossed 40 only in May 2014.


  2. ebix.com, Inc. (EBIX)
    • Direction: Long
    • Entry: 13.91
    • Stop: 13.23
    • Target: 14.47
    • Pattern: Expansion Candle
    • Note: Low volume, low price stock


  3. Lions Gate Entertainment Corp. (LGF)
    • Direction: Long
    • Entry: 32.94
    • Stop: 32.41
    • Target: 33.74
    • Pattern: Ascending Triangle Up Break


  4. Lowes Companies, Inc. (LOW)
    • Direction: Long
    • Entry: 49.89 or ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 49.23
    • Target: 50.50
    • Pattern: Expansion Candle / Ascending Triangle Up Break


  5. Tekmira Pharmaceuticals Corp.(TKMR)
    • Direction: Long
    • Entry: 20.83 or ORB (Opening Range Bar – first 30 minute candle) breakout
    • Stop: 19.48
    • Target: 22.25
    • Pattern: Expansion Candle / Breakaway Gap


Previous Trades Update: Three of our trades triggered on August 8th. If you have not already closed them then modify the stops and target levels.

  • DXCM (long) – modify stop to 42.82 and target to 44.52
  • YY (long) – modify stop to 84.77 and target to 87.80
  • SNI (short) – modify stop to 78.42 and target to 76.62

Trades triggered on August 7th:

  • ALJ (long) closed for 0.8% gain
  • WNR (long) returned 1.8%

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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