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Thursday, December 3, 2015

Why I shorted MNK AAPL SWKS

SPY opened weak today ( one thing I always have on one monitor)
SPY


Normally when intra-day level is above the 200sma ( 2 min ) that is a long bias. My rule to go long is when price is at or above 20sma (when 20 sma is above 200sma). which indicates strength. However MNK had nice three day rally after 4 days consolidation right into overhead daily resistance at 74.50., and iSPY is weak for the day being in red. It may go higher above 74.50 but a pull back or consolidation is more likely to happen which I try to anticipate into, to make few bucks shorting it. How far down I expect it to go ?
I look at a bigger time frame 5min chart ,  expecting to pull back down to the 200sma on 5 min bars which is 73s area or even around 70 if using 15 min time frame bars. Risk reward is ok risking about 50 cents with stop HOD to make $1.5 or $2.5. I beleave it is worth it, having in mind I had nice winners on SWKS shorting the gap up open after being overextended,  and making few bucks on AAPL short. So let's see what happens today , maybe even tomorrow. I can always exit with smaller loss then planned if market conditions indicate so.
Click on the images to enlarge
MNK daily  and 2 min 

MNK 5 min 

MNK 15 min 
MNK updated at close covering with over $1.50 gain  risking 50 cents

These are the SWKS and AAPL short plays from earlier today 
SWKS  the short for 1.20 gain ONLY

AAPL the short ( one time only did not get in  the second pop from HOD )

Salute
and stay disciplinned

AngelDan@DaChopa






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