Day Trade - Amazon.com, Inc. (Public, NASDAQ:AMZN)

AMZN was an earnings gap as discussed in Thursday's post. I placed my fibs from PDH to ORL. Price consolidated in the retracement zone and rolled over. Took a partial after 3WRBs and closed the position after AMZN carved out a hammer after tagging the weekly pivot P.

If the 20 EMA holds as resistance in early trade Monday, we could get a continuation play as we did with QCOM after its earnings gap.

QCOM was an earnings gap short on Thursday, but relatively disappointing given that we didn't get more sellers. The late day move up towards the downsloping 20 EMA proved to be resistance as it had no follow through and breached the PDL in early trade Friday for a gap continuation play.

I'll be watching AMZN for a similar setup tomorrow.

AAPL - Scalp trade - I knew that AAPL would attempt to BO of the base forming at the blue line. Once the triangle formed, it allowed for an early entry. Good thing, because the rally out of the base turned out to be lame.

Shanda Interactive Entertainment Ltd ADR (Public, NASDAQ:SNDA)

The first chart is the daily EOD Friday. I was looking to short SNDA below the middle blue line around $55.00.

SNDA gapped down on the open and carved out a hanging man (sort of - long lower shadow). The next stick was an IB in the lower shadow of the HM. The only caveat was the distance of the down sloping 5 period EMA (pink). I decided to take the trade anyway with a stop at PDL. If the distance from 5 ema too wide, stop has to be placed accordingly.

After my entry SNDA printed a doji with long lower shadow, which looked like it wanted to retrace and it did, but it held S1 as resistance and came back down for a fast move to the 50% FE of the late day swing high to the ORL. My target on the second half was eventually reached.

The daily has now carved out a base at $50.00 from a double top. Today's selling on high volume. So we have three consecutive lower closes on accelerating volume - looking for consolidation at the base, prior to BO.

Chinese internet ADRs, as a group were weak today - SOHU, SINA, NTES.

Perfect World - No Counter Trend Impulse

Earlier tonight I exchanged comments with another trader about a failed trade. He was trading a gap up, with the trend, and took an entry after a shallow (38-50%) test into the intra-day ambush zone (38-62%). The only sign of a problem was somewhat of an impulsive (counter-trend) move coming into the ambush zone.

A key is to look for non-impulsive counter-trend corrections to trade. I traded PWRD (from scanner), and even though it was a bit choppy and it was a short in an overall up market, it worked for a late retest of the AM low. Notice the absence of any significant counter-trend impulse in the bear flag (15min and 5min charts). It also helped that the bear flag formed near the ORL and below the PDL.