I decided to trade Oracle today. Its a name I'm somewhat familiar with, not too expensive, large cap, and liquid. I like tech in general because its relevant to me. Oracle has been stronger than the market since about mid August, although I didn't really recognize this until after my trades. Below are daily charts of $ORCL (top) and the $SPY (bottom).
I started off looking at the one minute charts a little bit after 12 noon. It looked to me that the SPYs might be stuck under the 125.30 level that had held resistance a number of times earlier in the morning. Thinking it might fall back into the day's range, I shorted at 32.62 when it failed to break the falling trend line shown in the picture below. My stop was at 32.72, and after shortly moving it my favor I was stopped out. This should have tipped me off that both the market and $ORCL were stronger than I had expected. Unfortunately it didn't and I tried to get short again near 1pm at 32.70. This was a bad mistake, getting short a strong stock in a rather strong market (in addition, the SPYs had just made a new high). Had I analyzed a longer timeframe I would have seen this. @stevemcmannis let me know of my mistake and I was stopped out soon after. $ORCL trended up all day, along with the market .
1 min ORCL (top) & SPY (bottom)
I learned that I need to be more aware of relative strength intraday. I also need to think more about the time horizon for my trades. My first trade moved for me immediately like I thought it would, but once the SPY's showed they weren't going to break down further I should have gotten out. I'll be back at it tomorrow, following $ORCL and hopefully a few more. Good luck, and have a great weekend.
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