Friday, October 7, 2011

How I Traded WYNN

WYNN provided a rare oversold long entry with two closes outside both the 12 and 50 x 2 SD Bollinger bands followed by a "doji" inside the 12 x 2 SD band.  With the market showing a desire to reverse Tuesday morning I went long WYNN at 110.00 and exited this morning at 134.72 when it became evident that the run-up was over.  When people say you can't buy bottoms they don't know what they are talking about.  This is a perfect example of how to buy a bottom in a stock.  The key is to buy when both the broader market AND the stock are both deeply oversold AND showing slowing momentum to the downside.

It looks like the expected pullback may be underway, but it is a little early to tell.  There may be another rally high before the pullback begins in earnest.  The 38.2% retracement target was not hit today for my ES position, so I am holding until either the target is hit, or there is a pullback with an opportunity to add to the position next week.  Currently my stop is at breakeven in the position.

Have a great weekend!

1 comment:

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