Advanced Trading Plan, with rules:
CLNY 0.04/share price was triggered today and ended today

Automated Trading:
No trades posted today

Nasdaq Scalp Opportunities: Note: While there are many more opportunities offered daily by the Around the Horn NASDAQ Scalper Trading Service, the trades noted here are the most reliable setups of the day. Setting stops on the scalps is necessarily a case-by-case analysis that includes tape reading, overall market sentiment, the spread of the ask/bid, recent support/resistance, profit potential, size of the trade, liquidity of the equity, etc. A general guideline is in the 10 cent range, though it is sometimes tighter or looser depending on these factors. Scalper Members are now able to join us on select days for the first couple hours of trading. If you are interested, email me at Julie@TraderInsight.com

There were a couple of opportunities the members in the War Room traded today from the scalp plan today.

Swing Trades:
The trades holding steady, with an entry and move to 50% to target in ADBE.

There were several opportunities for trades in the scalp plan today, including moves to the short side in NTES from the third level, TSLA from the first level, with a scratch in a trade at the second level, and ULTA in the second levels.

We also had a nice trade in the Stocks to Watch long CLD from the entry at 19.01, with a stop set intra day prior to entry at 18.77, trading tot he target at 19.31.

Swing Trades:
We had an entry today as well as Friday and are holding steady in the trades we are in.

Advanced Trading Plan, with rules:
KSS 0.0/share: KSS triggered the entry but ended the day where it began, at breakeven
POT -0.06/share 40.81 to 40.87

Automated Trading:
AMX: technically, this did not trigger today as the specialist opened the stock at 9:31 with over 200,000 shares and our planned trades are not valid unless the specialist/NYSE has opened the stock. I make mention of it here as those who are bracket trading may have been triggered in, as were we.
KSS 0.0/share: KSS triggered the entry but ended the day where it began, at breakeven

Nasdaq Scalp Opportunities: Note: While there are many more opportunities offered daily by the Around the Horn NASDAQ Scalper Trading Service, the trades noted here are the most reliable setups of the day. Setting stops on the scalps is necessarily a case-by-case analysis that includes tape reading, overall market sentiment, the spread of the ask/bid, recent support/resistance, profit potential, size of the trade, liquidity of the equity, etc. A general guideline is in the 10 cent range, though it is sometimes tighter or looser depending on these factors. Scalper Members are now able to join us on select days for the first couple hours of trading. If you are interested, email me at Julie@TraderInsight.com

There were a couple of opportunities offered by the scalp plan today.
CAR had an early aggressive move from the third level that went right through the second and first levels, from 27.42 to 28.28. MLNX had a wide spread but moved nicely from the third level at 60.40 down through the second level to 59.54. An aggressive move after a pullback to the third level entry in JBHT also saw profits, but JBHT also yielded a couple of scratches.

Swing Trades:
The trades holding steady.

BMY 0.18/share 38.32 to 38.50
FCX 0.20/share 33.31 to 33.11
RHT -0.41/share 50.29 to 50.70

Automated Trading:

BMY 0.18/share 38.32 to 38.50
FCX 0.40/share 33.31 to 33.11
RHT -0.41/share 50.29 to 50.70

Nasdaq Scalp Opportunities:
Note: While there are many more opportunities offered daily by the Around the Horn NASDAQ Scalper Trading Service, the trades noted here are the most reliable setups of the day. Setting stops on the scalps is necessarily a case-by-case analysis that includes tape reading, overall market sentiment, the spread of the ask/bid, recent support/resistance, profit potential, size of the trade, liquidity of the equity, etc. A general guideline is in the 10 cent range, though it is sometimes tighter or looser depending on these factors. Scalper Members are now able to join us on select days for the first couple hours of trading. If you are interested, email me at Julie@TraderInsight.com

There were several opportunities in the scalp plan today, including moves to the short side in AKAM  as well as ULTA from the second and third levels. To the long side, we had opportunity in SNDK & WDC. Some of these had a couple of moves and there were also a couple of scratches.

Swing Trades:
We hit a profit target in STX today for $2.68/share over 7 days and had a new entry to the long side. The other trades holding steady.

I am a new member so I am looking forward to getting to know you and your service better. hopefully it will be a long relationship. I just reviewing the information here and I have a few questions if you don’t mind. I will preface my questions with I was previously a Technical Manager so I am a analytical / data guy. But I finished my career as a Market Manager for a large multi national company, so I am sensitive towards sales at time, or so I have been told by sale people. My comment is always being a bottom line guy and I found sales don’t always like bottom line people. I say this because my questions can be taken as critical at times but I assure you I am just trying to learn and understand.

I see you report the performance on gain and not percentage. Is this correct? If so why do you report it by gross gain? Just like in March RIG gained 0.62 and BAS was $0.45. Which is fairly close but RIG was a 1.2% gain compared to a BAS was 3.2%

Answer 1: Adrian Manz

The return per trade depends on how assets are allocated to each position. Personally, I use a fixed position size, which would be more in line with what you are proposing. A .62 profit on 1,000 shares, for example, would represent a $620 gain, while the .45 profit would represent a $450 gain. The assumptions made in the marketing spreadsheets report the results differently, because they work under the assumption that everyone allocates shares equally to each planned position. So, on a day with more planned trades, a trader would be splitting the account into smaller allocations, and thus a larger return as measured in points winds up being smaller than a lesser return in points on a day with only one or two stocks on the plan.

It sounds to me as if your view of trading is a bit closer to the way that I trade my own account, which is to apply equal lot sizes to every position.

Question 2: Member:

I see your performance sheet since inception. I calculated out the return YTD which included today’s trade (Friday) and after 20% of the year an annualized return for 2013 would be 13.8% . Again looking at the history of returns it could be argued that the last 4 years of performance is completely different than the first 4 years. Is there are thought on that? Do you feel the method is less effective than in the past? I mean to me just looking at the trend, which is what traders do, the long term trend looks down and might even be accelerating if you take the last 24 months. I am interested in your thoughts and what you think the overall expectations should be. Should I expect a 15-20% return?

Answer 2: Adrian Manz

As for the second question, the answer is complicated by numerous factors.  First, and foremost, daily spreads and ranges contracted significantly in the years since I started trading.  Decimalization took the smallest spread from .12 cents down to a penny.  This had a dramatic impact on daily travel range, and the ability to plan for large moves.   Second, HFT (High Frequency Trading) and program trading have dramatically narrowed intraday travel range.  The name of the game used to be finding institutional order flow and stepping in front of it.  Institutions looked to trade very large swings, and the movements  in the markets were predictable within 1 point ranges, mostly because of the size of institutional order flow.  HFT has run interference in the markets by creating volatility-based brackets on intraday price activity.  Today, much of the job is about identifying where HFT and program trading will initiate, and then entering and exiting according to the likely parameters used in HFT algorithms.  This substantially narrows profit potential, but the alternative is to caught on the wrong side of a program.

I hope that helps.

All the Best,

Adrian

Today’s market price action did not leave any reliable setups for Tuesday’s trading (and it takes twice as long to figure out and disqualify the list than if reliable trades present themselves!) so tomorrow will also be quiet. In tomorrow’s blog I will go over today’s scalps and any movement in the swing trades.

Keep an eye out for Second Look opportunities from today’s list of trades that didn’t fully develop.

Daily Income Trader:
GPS -0.31/share Long 36.10 to 35.79

Stocks to Watch/Stocks and Sectors
This section of the Advanced Daily Income Trader is intended to offer traders who are in front of their computer with additional intraday opportunities. For these stocks, stops could not be clearly determined during selection process but are included as discretionary trades for the following day.

All of the Stocks to Watch went in the direction expected, but without clear stops in NEM, BVN, EQR. There was opportunity in the Stocks and Sectors scalp in CHK with a 10 cent stop with two possible trades from 20.96 to 21.11 then later from 20.96 to 21.29.

Nasdaq Scalp Opportunities:
Note: While there are many more opportunities offered daily by the Around the Horn NASDAQ Scalper Trading Service, the trades noted here are the most reliable setups of the day. Setting stops on the scalps is necessarily a case-by-case analysis that includes tape reading, overall market sentiment, the spread of the ask/bid, recent support/resistance, profit potential, size of the trade, liquidity of the equity, etc. A general guideline is in the 10 cent range, though it is sometimes tighter or looser depending on these factors. Scalper Members are now able to join us on select days for the first couple hours of trading. If you are interested, email me at Julie@TraderInsight.com

Friday saw opportunity in CPRT, though not ideal, from 32.40 to 32.07. ONXX, PANL, PDCE, & RGLD all had opportunity from their secondary levels. There were also a couple of scratched trades throughout the day.

Swing Trades:
All swing trades holding steady.

Automated Trading:
GPN 0.06/share Long 47.35 to 47.29

Nasdaq Scalp Opportunities:
Note: While there are many more opportunities offered daily by the Around the Horn NASDAQ Scalper Trading Service, the trades noted here are the most reliable setups of the day. Setting stops on the scalps is necessarily a case-by-case analysis that includes tape reading, overall market sentiment, the spread of the ask/bid, recent support/resistance, profit potential, size of the trade, liquidity of the equity, etc. A general guideline is in the 10 cent range, though it is sometimes tighter or looser depending on these factors. Scalper Members are now able to join us on select days for the first couple hours of trading. If you are interested, email me at Julie@TraderInsight.com

There were plenty of opportunities in the scalp plan today, including moves to the short side in EXPD from both the second and third levels, TSLA from the first and second levels, Z from the second level. Some of these had a couple of moves and there were also a couple of scratches.

Stocks and Sectors:
There was a nice move if you were watching in TDC, which put in a 59.25 stop early in the day and moved from the 59.05 entry down to the 58.62 target.

Swing Trades:
trades holding steady.

Automated Trading:
CNW -0.47/share Long 36.33 to 36.33

Second Look:
I have a second look in WTR from today’s plan and will look for scalping opportunities in tomorrow’s session. I will also watch to see if CNW will set up again to the long side tomorrow. The Stocks to Watch trade in NOW had a pop up through the entry in today’s trading and later settled in near the entry level so I will watch it tomorrow as an additional scalp opportunity.

Nasdaq Scalp Opportunities:
Note: While there are many more opportunities offered daily by the Around the Horn NASDAQ Scalper Trading Service, the trades noted here are the most reliable setups of the day. Setting stops on the scalps is necessarily a case-by-case analysis that includes tape reading, overall market sentiment, the spread of the ask/bid, recent support/resistance, profit potential, size of the trade, liquidity of the equity, etc. A general guideline is in the 10 cent range, though it is sometimes tighter or looser depending on these factors. Scalper Members are now able to join us on select days for the first couple hours of trading. If you are interested, email me at Julie@TraderInsight.com

Today’s scalps were all to the long side and most blew out that way from early on without pullback, but there was some opportunity in CERN from 91.34 to 91.59. All of the scalps were setup for long entries, meaning we look for a pullback before entering on a pop back up. Adrian also gave the room a takeover chatter rumor opportunity in WLT.

Swing Trades:
One new short entry today- check in the member’s area

Swing Trades:
SCSS: if trailing a stop, we are looking at 17.70 as a profit stop
NUAN: stopped out at the profit of 50% to target

New Swing Trades:
One new long entry today- check in the member’s area