8/6/2007 Mon
Scalping and the Futures
Gapper's
Eye utilizes our original unique stock scanner, Break Scan, and sophisticated
chart software, CQG. With nominal fee, the Break Scan is available to our
members.
The Kamikaze Gap Play
was introduced to the U.S. traders in the
August 2005 issue of Active Trader Magazine.
The NASDAQ opened higher as indicated by the blue line.
Excerpts from Net Aid:
Hatch 3 did not give us excellent
patterns, so I concentrated on scalping utilizing 1-minute charts.
Long EBAY at 33.65.
Exit at 33.77.
I picked ＥＢＡＹ based on the chart below.
The futures are directionless.
I exited the trade because of the breakout failure.
Long WYNN at 103.0.
Out at 102.74.
I expected the futures to reverse.
WYNN has a good daily chart pattern.
Long at 102.60.
The futures are reversing now.
Out at 102.50.
This time I was expecting the futures to bounce off the edge.
Short at 102.45.
The futures are not going down. Exit at 101.24.
A short trade.
Long at 101.30.
Exit at 101.80.
I was looking for a reversal off the edge.
The futures are weak.
Ebay, 33.75.
Out at 33.68.
It did not reverse as I expected.
WYNN, at 101.60
The futures are getting weak.
Out at 101.42.
I was looking fro a reversal.
Long WFMI at 40.90.
Out at 41.30.
I moved on to the stronger stock.
EBAY at 33.73
Out at 33.95
EBAY was bought as soon as the futures bottomed out.
41.11 (WFMI)
Out at 41.31.
I used the futures to time WFMI entry.
EBAY
Simple breakout strategies.
Of course, I was watching the
futures.
Total points gain: 2.12
It means you gained more than $1200 if you traded 500 shares of WYNN and
1000 shares of other stocks.
Make sure you pick good chart patens
only.
If you traded these three stocks
(400 shares of WYNN and 800 shares of other stocks) with hatch 3 gap
plays, your results would be:
Up $1612
Up $688
Up $1,568
The NASDAQ finished with an up bar.
Gapper's Eye Index
Daytradenet Top
Charts courtesy of CQG
Source: 2006 CQG, Inc. All rights reserved worldwide.
Red
and blue zones show the gap of the preceding day.
The Green zone indicates the profitable zone of
trading.