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Here are 2 of the trades I took last week. One was the WLT short and the other was the CELG long.

WLT(Walter Energy, Inc.) is a very strong stock that you do not want to swing short into. By “swing short”, I mean “open a short position and hold it over night”. Nevertheless, when day trading,  I short anything that moves and shows weakness. Most of the time, when a stock starts weak, it will remain weak for the rest of the day.  Here is the 3 min chart on 12/17/09.

Click on the image to have a better view

A was a good short entry , which I missed.  So I waited a bit.  When WLT rebounded to B, I opened a short position.  Please note that B and A were at the same level.   A was a key point taken out by the bears in the first drop. Hence, it was bound to be ambushed by the bears.  In addition, it was a psychological support for the bulls trapped above A. However, that support became a resistance when it was effectively broken.  These 2 reasons made B a good short entry. In fact, C was another good short entry since it formed the second top with B.  Among all these 3 short entries, I personally think C was the best.  Your millage might vary though.

CELG (Celgene Corporation) is just an average stock whose beta is only 0.5.  But it was extremely strong Friday.  I had to give it a try.

Here is the 3 min chart on 12/18/09.

I opened a small position of 100 shares around A, which was a support.  It was only 100 shares because it was still consolidating.  when it broke out of the previous range, I added 300 shares immediately.  The breakout was relatively clean.  But it lacked strength because the volume did not follow.