Monday, October 7, 2013

AA Position (Long) -Earnings Tonight

I usually wouldn't do this and I'd prefer options, but the premium before earnings is often so high that even with an excellent result, it's hard to even break-even. As usual, AA kicks off Q3 earnings season after the bell.

This will be an AA equity long trading position, about 1/2 the size of a core position. The reason I like AA here is because of the consistiency between various timeframes using the 3C trend chart.

 This is a 60 min chart, what I noticed was the divergences are consistent through multiple timeframes, they appear at the same areas.

 30 min chart

15 min chart which looks sharper as it should

5 min chart

1 min chart

Although it looks like stops have been recently run, there are two very clear levels that stops are likely amassed below, at $7.84 and $7.82.

As a trading position and on earnings, I'm not going to rush to any judgements tonight, good or bad, but rather wait for regular hours trade tomorrow, but that's just my preference.


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