http://wp.me/p2BBgh-96R A trader from the SMBU Trading Community, but not our desk, presented a trade virtually. Trader James C is a recent graduate of SMB DNA 2013. Attendance is free for SMBU Tools subscribers, who can also ask questions during the event. See the power point of  this archived trade: $P 2nd Day Opening Drive and Pullback.

1. P
nd
2
Day Opening Drive and
Pullback
James C
1-7-2014

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3. Strategy
• P strong momentum stock
• Uptrend since late 2012
• Yesterday (Jan 6) reported continued growth
in radio listenership leading to powerful move
to new all time highs with realtive strength to
a weak SPY
• Today look for pullbacks into support for
continuation of move higher

4. Big Picture

5. • SPY trading near all time highs 184.69 (Dec 31)
• 1st 3 trading days 2014 seeing pullback into
support just above 182

7. • This morning (Jan 7) pre-mkt SPY gapping
above 183
• Holding above here on the open will bring
183.60 into play – 2014 resistance area –
• This may give added support to strong stocks
such as P

8. Intraday Fundamentals
• P greater than expected growth in radio listenership for
December
• Growth in subscribers and hours listened
• Announced plans to launch in-car advertising
• ATR – no exact data on this but certainly over $1 and
yesterday 3.45
• ADV 9M
• Short 21.7% - mainly due to increased competition in
radio space from itunes google and spotify
• Combine short interest with good data – expect further
gains until the story changes

9. Long Term Technicals

10. • Strong 2013 breaking above ipo highs (26) mid
September
• Since then very tradable long and short with
good momentum swings as the longs/shorts
battle it out
• Each attempt to roll P over has ended in
reversals higher – generally buoyed by
impressive data

11. Short Term Technicals

12. • Yesterday’s move (Jan 6) was significant in that
any pullback was very shallow and short lived
until the end of day when a larger pullback
happened into the close
• AM meeting Steve identified 31 and 30.65
support for good r/r for a move to new highs

14. • Pre-mkt P showing weakness below close
31.49

15. Trade Management
• Pre-mkt set bids just above 31 and 30.65 hoping
for a quick flush on the open.
• P opening low 31.16
• Noted buying 31.20s and 30s
• Initial Resistance 31.50
• Started to hold 31.40
• Bought Tier 1 31.47
• Sold Tier 1 32.05
• Continued strength making new all time high
32.74

16. • Couldn’t hold previous day high (32.45)
pulling back to 32 area
• 32.20 acted as support
• Bought Tier 1 32.22
• Sold ½ on move to highs 32.62
• Sold ½ 32.97

17. Review
• Need to work on Reason2sell to extend gains
• Ok to take some risk off
• Let the rest run until there is a genuine change in
tone
• Example on this trade is moving above yesterday
high 32.45 and then unable to hold it =
reason2sell
• Good job buying into pullback
• Add holding above 32.45 and 32.74 for the next
leg

18. Notes
• P has more upside over the coming days and
weeks – until the story changes
• Know your levels every day
• Tomorrow support areas 32.20s 31.20
• High 33.70