Why I still like GW's 1-5

In GW's 1-5 and over time S/O and I have learned how to apply nearly all of his techniques. Today we couldn't wait to get into one of them he called the Slam.

Today (expiration Friday) July 17th, 2018 Netflix missed big time. Everyone expected that to be a huge drag on the Nasdaq. Well we all know what that would mean a pop down on the Q's. Right?

A gap down. Some of you will remember I love GAPS! Love 'em. Love...love...(go to investopedia to learn about gaps folks and remember I trade SMALL charts!)

S/O and I knew Gap down on the Q's on small charts meant look for a pull back (GW's 1-5 SLAM play) equals BIG BUCKS!

We put in our order for .88. Now something some of you may not know S/O and I have Qcharts and we have a 1,3,5,8 and 13 with Fibonacci moving averages on them. We are still in the trade with the sell point right now @ $2.07 @12:25PM

FEAR IS YOUR BIGGEST ENEMY. Sold out @ $2.06



Edited 1 time(s). Last edit at 07/17/2018 11:58AM by Darcy3.

Darcy3 Wrote:
-------------------------------------------------------
> In GW's 1-5 and over time S/O and I have learned
> how to apply nearly all of his techniques. Today
> we couldn't wait to get into one of them he called
> the Slam.
>
> Today (expiration Friday) July 17th, 2018 Netflix
> missed big time. Everyone expected that to be a
> huge drag on the Nasdaq. Well we all know what
> that would mean a pop down on the Q's. Right?
>
> A gap down. Some of you will remember I love GAPS!
> Love 'em. Love...love...(go to investopedia to
> learn about gaps folks and remember I trade SMALL
> charts!)
>
> S/O and I knew Gap down on the Q's on small charts
> meant look for a pull back (GW's 1-5 SLAM play)
> equals BIG BUCKS!
>
> We put in our order for .88. Now something some of
> you may not know S/O and I have Qcharts and we
> have a 1,3,5,8 and 13 with Fibonacci moving
> averages on them. We are still in the trade with
> the sell point right now @ $2.07 @12:25PM
>
> FEAR IS YOUR BIGGEST ENEMY. Sold out @ $2.06

WOW!!!! Talk about out of nowhere.... Nothing much new posted on here for a couple of months then BAM!!! Darcy shows up. Unreal. I have read so many of your old posts Darcy, trying to incorporate your method along with Gary's. I really wished I had been on this forum when you were active the first couple of times. Anyway, I just wanted to say thank you very much for all the time you have taken in the past to explain your trades. It is a great motivator for us when we see you succeed. I am very happy that you are back on this forum. Please stick around.

Thanks
Scottie

So in GW's 1-5 we were taught about NEWS plays. Anyone ever go back there and re-read? The talking heads talked and talked and talked and talked and talked and talked and talked (get the hint?) about FB. I mean almost every single day!! Over and over and over and over and over and over...enough already! If you didn't get the hint you should have. FB was going D-O-W-N!!!

Paying attention to the charts you would have bought a call on earnings. Market Maker got-cha dance! Watch 'em wicks! Those are real traders at work!

Bought 3 PUTS on FB 6/24/18 strike 215 for 6.90 and just sold for 38.90 which was .05 less than they were asking. We are happy. (That's 3 for me and 3 for him)

Why did we buy so early?

1) We knew FB would hit the area of $212 and change (that was my signal to buy a PUT) and we knew we were coming into earnings and FB would miss. The news was just really, really bad. FB needs advertising. FB has been in the news a lot.

2) We had to travel to get to specialist over night. We were tied up from 7:30 AM Wednesday morning until 5:15 PM. S/O had an appointment with a doctor...no cell phones. Our heads simply were not into the market. He needs spinal surgery soon. By the time we'd get out it would have been too late to buy before the open or after the close. Thus why we got so few and why we bought so early.

3) We do not trade on margin. We could roll the trade over. FB will turn around and because we have a larger sum now to trade with we could stretch out the trade if we wanted by buying calls to off the loss in the put if the stock went up.

But like I said we were almost 100% sure after all this time and given the WICKS we saw on the candles the trade was going to be a PUT.

If you are looking for a secret in the market...DON'T! The only time there is a secret in the market is if you are an insider-trader. That makes you a cheat.

The secret in the market is FIND OUT WHAT WORKS FOR YOU! Moving averages, gaps, wicks,and earnings, works for me and S/O. Short charts works for us. Listening to the news works for us. Other things may work for you. Find it. Develop it and stick with that. Don't jump around like a jumping bean or you will never ever find it. You may never be able to trade like we do.

However I will say this MOVING AVERAGES ARE MOVING AVERAGES! They are they same always. They react the same always. Up, down sideways. When they cross and pressure each other either up or down the stock will react likewise. NEWS can cause the moving average to react like it did in FB. NEWS can be a pressure and if "SOMEONE" buys stocks (options) while the news is *hinky* guess what(???) the moving average will move up but the NEWS is still *hinky* pay attention! FB moving up while the news was *hinky* I think NOT!

Okay here we go again about a news trade. If you had the ability to listen to CNBC today July 26, 2018 you would have heard them announce an alert that Walmart dropped Synchrony and picked up someone else. (SYF)

Well there goes a trade for S/O and I and we jumped on it. Bought 10 Aug 32 PUT @ $1.65 @ 1:30PM and sold @ 1:48 for $2.35.

We used our Fibonacci charts (has Fibonacci moving averages and bollinger bands only) to enter and used them to exit.

It's time to go get a hot fudge sundae!