0:04 hey guys Brian from bear ball traders
0:08 Friday March 16th just wanted to go over
0:10 trade I did in the room this morning
0:15 Tiffany came up with some earnings that
0:18 disappointed I guess guidance maybe not
0:20 so much the earnings themselves but
0:23 those forward guidance so it all started
0:26 with looking at the daily and really
0:29 liked the daily set up on this for a
0:32 short you can see here it consolidated
0:36 nicely and arranged through February and
0:40 the day prior Thursday had a nice day up
0:42 and and that's sort of one of the things
0:44 I'd like to see for an opening range
0:48 breakdown set up had decent volume on
0:50 this on yesterday too so you know he had
0:51 a lot of traders in there that thought
0:53 that the I guess they thought the stock
0:56 was gonna gap up on earnings if they
0:58 knew the earnings was gonna be announced
1:02 next day so you know the psychology of
1:04 all the people that bought in thinking
1:05 they were gonna you know come in and
1:07 find the stock higher and then they find
1:12 it lower you know disappointment fear of
1:15 losing money so they were probably
1:18 pretty ready to bail so and the only
1:20 other thing I like about this is the is
1:23 this level of gap down it wasn't huge it
1:27 was only 5% and that's a sweet spot for
1:30 me sort of five six seven percent gap
1:33 down is a nice range I don't like seeing
1:36 a stock gapping down 12 or 15 percent
1:39 kind of feel like Ola the bad news might
1:43 be priced in so you know this five six
1:46 percent 7 percent gap down level is a
1:48 nice level to look at an opening range
1:50 break down as well so daily setup was
1:53 nice up updated prior day and gapped
1:57 down and into a nice 5 6 percent range
2:01 so let's see mechanics how that all
2:05 happened this is the one-minute chart
2:08 it's a pretty funky pre market action I
2:10 think the stock went below 95 at one
2:13 point and then you just prior to the
2:14 market open you can kind of see it ran
2:19 up you know which wasn't you know great
2:23 so market opened and then you know we
2:24 had that first volatile one minute
2:26 candle and then that's the second one
2:29 you know you don't trade at the very
2:31 open you can want to see you want to see
2:32 this thing set up that's why it's called
2:35 an opening range breakdown and that will
2:38 happen probably within the first five
2:40 minutes I would say it could be a little
2:43 bit longer but you know you need to set
2:44 a little and a couple minutes go by
2:46 before things settles out and you get
2:49 some direction and you're looking for
2:52 this thing not to break the high so he
2:54 it's stablished a high they're low
2:57 they're again like I said it was all
2:59 over the place didn't didn't break this
3:02 high didn't break the high here and now
3:06 you're making a lower high so you know
3:08 here's your sort of level of support and
3:11 it's close to this this level here so
3:14 Sooners it's gonna break this sort of 98
3:16 range kind of figured it was gonna go
3:19 down so I took my short somewhere around
3:21 ninety eight ten I believe it's what I
3:25 got to fill that so I'm gonna continue
3:27 down from there and you know my premium
3:29 my target was somewhere around ninety
3:33 five based on pre market action and I
3:34 did take some off on the way down and
3:38 you know covered the rest under 196 I
3:44 believe so that was a an opening range
3:50 breakdown pretty a pretty reliable trade
3:53 I mean you know my stop here would have
3:56 been you know over back up over here if
3:59 it had broken back above this level but
4:01 never did once it broke this this level
4:06 here so anyway yeah that's that's my
4:11 trade on Tiffany and I did do another
4:14 trade on it I did it long reason I did
4:16 went long and I can't see it on this
4:18 chart but it consolidated in this range
4:20 for quite a while and then I remember
4:22 kind of the pre market action house
4:23 people seemed to be wanting to buy it
4:25 you know down around
4:29 these levels and it actually
4:31 consolidated and then broke higher so as
4:32 soon as it broke out of this
4:35 consolidation range again it's all about
4:37 levels of support and resistance so as
4:40 soon as it broke that resistance range
4:44 it went up I think it went over 99 it
4:45 had a nice run back up
4:48 so maybe trapping you know people that
4:50 were short here maybe some people
4:52 thought it was maybe gonna trend lower
4:56 and some short covering started to
4:58 happen and some of these people that
5:00 want a Dolan at the lower price came in
5:02 and started buying it so I caught it on
5:05 the downside and I caught it on the
5:08 upside so it was a good day overall for
5:12 me like that Tiffany trade love the
5:14 opening range breakdown trade it's
5:18 pretty reliable trade so guys have a
5:21 good weekend Friday we'll see everyone
5:24 in the room if you join us bearable
5:27 traders chat room see you on Monday
5:30 morning have a good weekend guys bye for now
