I've been shadow trading this strategy for a few weeks. Couple of times, I even made some small trades. However, if I'm late in noticing the target being in the aforementioned pre-determined spot, I am less inclined to pull the trigger; this is less than optimal and I'm getting less emotional & more methodical at this.
1. Got a buy signal on AAPL last Tuesday (9/13) at 382, with an expected target of 420. Did not trade this signal as I was late in noticing the signal by 20 minutes. Huge opportunity cost.
2. Got a sell signal on NFLX on 9/15. Since the huge gap-down (from 208 to 176) triggered the signal, I was less inclined to open a position. Netflix has lost another another 30% or so since the Sell signal.
3. Got a sell signal on SINA on 9/15, when the stock was at 110. Decided to move forward with this. But the instrument I selected to execute this trade (105 Strike Puts expiring on 9/16) was wrong. Closed the position with a partial loss on the Put premium.
In the days & weeks to come, I will be honing this like a primitive hunter-gatherer who found a sharp implement for the first time.
Fast forward to Today...
Chipotle Mexican Grill (CMG) put in a nice shooting star on a rally that has lasted for more than 34 months. Cramer gave it the kiss of death in today's Mad Money as well. It's a shame the stock does not have weeklies. I'm looking to get into medium-term Puts with some intrinsic value.
Close-up of the Shooting Star:
Amazon (AMZN) has had repeated issues breaking above a Fibonacci Fan line, which it kissed once again today. I also got a Sell signal on my Lazy Sniper indicator today. Buying Puts on this baby.
