Wednesday, November 11, 2009
- Gap up post earnings
- approximately 10% short interest
- Mini breakout on daily chart
- Home builders have performed after earnings (see BZH yesterday)
If you click to enlarge the picture at the top right of this post you will see how our room approached this. On the left side is a copy of our Trading RM chat, available through Trading RM Real Time. Our trades are put into this chat real time for our subscribers to view. To the top right I have added a 2 minute chart of TOL (in green) against SPY (in red). The bottom right is a daily of TOL showing the breakout of its mini consolidation around $18.00.
As you can see we were accumulating TOL long between 8:35 am cst and 8:52am cst.
During this time the SPYs (in red) were in a mini down move. This is highlighted in the top chart by the blue channel. Further down in the Trading RM Blast you can see our traders exiting this trade profitably as TOL accelerates up from 9:06am cst through 9:20am cst.
Some of our traders also found support in TOL at $21.00 and entered long later in the day with the overall market weak, but TOL showing some support. I underlined this $21.00 level in blue.
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Labels: divergence, setup, TOL