Trader MD: SOHU - Sohu.com - Symmetrical Triangle; JASO - JA Solar Holdings - Gapper/Bull Flag; OII - Oceaneering International

SOHU, from the watch list, formed a nice orderly symmetrical triangle, which failed just below 77.

You'll notice as I was annotating the chart for SOHU, it began to break down out of the triangle/channel. I passed on this trade as SOHU was still above the VWAP (Volume Weight Average Price) for the day. In addition, I've seen that failed moves in 1 direction tend to exaggerate the move in the other direction.

If volume had picked up considerably to the downside and offered an entry point below the VWAP (which was ~75.50 at the time), I would have been more open to looking for a short entry.

JASO formed a bull flag after gapping up and was holding up fairly well considering market conditions and how FSLR was acting. I got whipsawed out as sellers came in at the ~23 level. While it went on to run much higher for the day, I let my stops work for me.

I was a bit aggressive with the trailing stop after exiting a partial position just below resistance, but with the market conditions and with SOHU reversing on me, I didn't want JASO to reverse on me as well.

While I was a bit aggressive with JASO, I still would say I did a decent job managing the trade.

That clearly was not the case with OII.

I've noted my lessons from the trade on the chart. I clearly didn't let my stops work for me.

OII could have been a big winner.

Below is the daily chart for OII. Today's gap up knifed through the down trend line of the recent triangle type formation. I didn't enter at that price of ~68.50, but instead waited for it to settle down and entered a swing position (separate account) as it broke back above the ~69.48 level (which is also where I simultaneously entered my day trade that I highlighted above).

Have a good weekend & get some rest. Next week is options expiration and we'll have a fair bit of economic data.

I'll be out of town for part of it and celebrating the other half with mom. Happy mother's day!