With a possible Fed rate hike just hours away, stocks were acting too coy to offer easy pickings. Even so, we found ways to trade GOOG, an $800 stock, while holding entry risk down to the usual, theoretical pennies per share. While ‘mechanical’ entries are best suited to this task, in this case we used a ‘counterintuitive’ entry and a buy-stop limit to get us aboard. I did not green-light the trade for students because the point ‘C’ low of the pattern was less than ideal. But the rationale for the trade is as clear as could be, and that is why there is something useful to learn here. If you want to cut to the chase, skip to the final 20 or so minutes of this session. It is there that we get on GOOG’s one-minute chart to make tradable sense of the stock’s seemingly chaotic, malicious price action.
