Robert Weinstein Trading Blog

Great day for one that lasted about 38 minutes

It should come as no surprise that NFLX was gonna be rocking with great earnings and a short interest of over 20%. There where basically two choices or maybe a third if you consider sitting on your hands an option. Get long before the open with the thought that margin calls would blast it even higher after the opening bell which seemed like a pretty good risk vs reward if your willing to accept that you could very well be late to the party and the time to have entered was yesterday after the earnings release or wait until after the bell and see if it blasts off into over bought territory. I choose to wait and see. NFLX did not disappoint and went overbought a little more than 10 minutes after the open. I started shorting in small size and scalped my way higher keeping a core short. I never allowed the trade to become to large as I did have in the back of my mind that the possibility of NFLX going up 35%+ was real and the shorts that stepped up before me were getting killed. So while I was not highly aggressive on the way up I was very much aggressive once it started to move down. I did scalp some small amount of it but for the most part it was a gain of well over target. I did trade it once again near the end of the day when it looked like it could get really weak into the close. I did have a small gain to add to the day but the lions share was during the opening. NFLX +526

AMZN was a strange trade today. I actually traded it twice. Once when it went up to where I felt resistance was at and a second time during after hours during the crazy earnings release trading. I made all of about $1 during the regular trading as I ended up getting stopped out but it was a better trade then it may at first appear as I will show. The real crazy thing that makes this trade noteworthy is in after hours trading. the earnings came out good and they were solid. The price even jumped to reflect it but then the price came down and fast. It went oversold but the idea of trying to catch that falling knife in afterhours gave me visions of BIDU again where I was right (and early) but trading without a signal. I did step up to the plate and did go long and pretty much was able to buy it at the dead bottom. Within about 10 cents of the move. I then held for a gain of about 1.90 a share. The thing that makes the PnL so small is I did it with 20 shares. Both during normal trading hours and in after hours. the after hours trade lasted all of about 40 seconds. I was able to make the trade with actual money (although small) to keep it real as apposed to a sim trade and not risk having my head handed to me. The commission and slippage amounts to about 4 cents a side even when posting liquidity as there is no rebate for sub lot size but I like how it allows to trade a big stock like it was a small one and it keeps the trade real.
AMZN 37

EK was an opening long that was stopped out when it retraced. it appears the ones that really made money on it today where the market makers. +11

NOK was an opening gap up trade that was doing nothing for about half an hour after the open and so I just walked as it looked like it was stuck in the snow. It was bouncing from just above my basis to just below. As things would turn out I covered my short right before it fell and in fact it was so close that I covered and was still watching it as it covered when it fell. No worries though as that price holding did give the appearance that it could start moving up just as easy as it moved down. +14

I was watching X for much of the day for an entry as both long and short looked good several times today. I am thinking tomorrow is an upday for X and during the close looked for a long entry but I was not given the official nod from my signal. I would have actually had a bid in during after hours but my sons had a school thing to go to so I passed and will look during the pre market tomorrow to find a long entry.

All around a good day but I am still getting very few overbought signals which is really limiting my opportunities. Wtih 15 credits of school and three sons I will be waiting before I can further develop my other signals. The WW signal keeps looking very good but truly needs to be automated to be effective. That will be my next big project during either spring break or at the start of the summer.

+ 588