I talked about this trade in the webinar tonight but wanted to go over it for any one who didnt get to attend. The red to green play is one of our go to setups and a very easy way to make quick money. This was actually szaman’s play today in the boom room and he got in early. He has been trading for a long period of time so he is allowed to get in early. But if you are new and inexperienced you want to wait and let this setup confirm before you enter. The characteristics of a red to green move are:
1. Major momentum stock from the day before
2. Morning washout (meaning the stock opens red or goes red fairly quickly when the market opens)
3. buy when the stock moves green for the first time that day
Earnings plays or news related stocks usually make for the best red to green moves. INVN reported big earnings the day before and was up huge. So today this was our target for red to green move. It washsed out first thing in the morning (which is when szaman got in). The entry for us would be when the stock moves green on the day. so that was at 12.32.
Here is a look at the intraday chart of invn and where the entry was.