Carl Icahn, Carl Icahn, Carl Icahn

Carl Icahn that was all I heard for days. Carl Icahn this. Carl Icahn that...blah...blah...blah.

Okay I said to my S/O let's just see what this Carl Icahn has to offer.

IEP= Icahn Enterprises. I looked at the 233 and daily. On 12/30 I bought 4 Feb 105 calls. I looked at it and it just looked like it was ready to go up. The down looked finished.

I watched the 55 for an entry and at about 3:02 I entered the trade.

I sold earlier today because I was happy with my profit. I sold for 14.30 profit of $2828.69.



Edited 1 time(s). Last edit at 01/03/2014 01:48PM by Darcy2.

Guess that makes you a Carl Icahn fan now doesn't it :-) lol.

Nice trade :-)

Nah...Go Panthers!

It also makes me wonder just how often I can make this trade...or do I need the talking heads mentioning him more. It is worth the watch!



Edited 1 time(s). Last edit at 01/03/2014 05:31PM by Darcy2.

Certainly is worth keeping an eye on it.

Go Panthers!!! Is right :-)

Hi Darcy,

Quick question about your IEP trade. You mentioned you were watching the 55 min chart for an entry. Looking at the Weekly, Daily, and 233 on IEP, all of which whose indicators were indicated lower, I didn't see an entry point on the 55 min chart on 12/30. Short of the 55 showing bullish divergence, there's no reversal pattern, no IVS, and no DE trigger. Just curious what "trigger" you considered other than it looked like it wasn't going down any more.

I admit I don't follow IEP, so this may be standard behavior for this stock. I only trade 4 stocks and the QQQs, using what I learned in WSB 1-5, RTP, and DE classes. I would have jumped this trade on 12/31 using the 55 if it were on my radar. Just curious if I missed something w/r/t the 55 min chart on 12/30. Thanks much!

Raleigh Trader - I'm always curious to know what stocks GW students are trading. What are your 4 stocks?

I hope one of them is TWTR because off the big charts it has been simply amazing!!!

RaleighTrader Wrote:
-------------------------------------------------------
> Hi Darcy,
>
> Quick question about your IEP trade. You mentioned
> you were watching the 55 min chart for an entry.
> Looking at the Weekly, Daily, and 233 on IEP, all
> of which whose indicators were indicated lower, I
> didn't see an entry point on the 55 min chart on
> 12/30. Short of the 55 showing bullish divergence,
> there's no reversal pattern, no IVS, and no DE
> trigger. Just curious what "trigger" you
> considered other than it looked like it wasn't
> going down any more.

Howdy RT,

You are right. There was no GW trigger. Note I had said " I looked at it and it just looked like it was ready to go up. The down looked finished." Why did I say this?

IEP is not a stock I had on my list. However at the end of the year I always would look to see just what the next hot stock might be. I kept noting that the CNBC talking heads kept talking about Carl Ichan...He is doing this and he is doing that....blah, blah, blah. So I said to myself..."Self if they are talking about him so much what is his stock doing? I looked it up and found the ticker and began to watch the 55 chart a few days before I entered the trade.

Now note on 12/09 to 12/10 there was a gap (first gap) that month. Then on 12/10 to 12/11 there was a second gap. I love gaps and eventually after watchng I can generally tell when a stock will change direction based on gaps AND the MACD (comb lines).

Let's look at three things. (1) Look at the comb lines on the MACD from 12/09 to 12/11. Compare them to the comb lines after these dates. Large right? Then from 12/16 to 12/27 the comb lines are very small. The GAP down was being digested. To me this was signaling a change coming. (2) Note the gap of 12/09 to 12/11. There was not a "dead cat bounce. The gap never closed. Gaps will close. The larger the chart sometimes the longer to close. In fact there still isn't a close. However I expected a pull up towards at least the first gap "ray line" I draw off the candle open of 12/11. I however had to take into consideration the death cross on the 55 starting at 12/18. This made me believe that my move although up would not hit the gap line of 12/11. Note the death cross happened after the gap of 12/11. (3) I was nearing a FP on the 55. MACD on the 34 was increasing, the directional movement was closing the space so I jumped because of all the reasons I mentioned and because CNBC was talking about Carl Ichan almost every day for days.

Note also I bought out until Feb buying myself some time just in case I was ahead of myself a few hours or a day or so.

That is what I saw and why I traded it. This is why I do like to listen to the chit-chat on CNBC. This time of year one can afford to be a "monkey" throwing darts.

Yesterday during lunch one of the Najarian brothers talked about POT. S/O and I listen when they talk (they were the ones talking about Ichan). They were interested in POT. So we jumped on the trade buying 100 contracts out of the money. We are still in this trade and are curently up over $4,000.00. We bought Jan 33 calls. S/O and I also bought CF off the back of this and **RTT** information sold this morning for a $650.00 profit each.



Edited 2 time(s). Last edit at 01/08/2014 12:34PM by Darcy2.

Thanks for sharing your thoughts on that trade, Darcy. I see what you're saying. Nice trade