4 Hit and Run Trading Success Stories

Editor's Note: if you'd like to get trades like this 5 days a week, consider this new Hit and Run Bundle.

I’ve been through many cycles since starting my career at the famous Drexel Burnham office in Beverly Hills.

And what have I learned?

That to make real money speculating, you can't ride one way.

You have to make money on the way down.

You've been watching the market.

So you know we just saw the quickest 30%+ drop in history… followed by a 30% rally in three weeks.

It's been a mess for the buy & hold crowd.

But it's been heaven for traders that can Hit and Run.

We trade the market from both sides almost every day.

Shake Shack (SHAK)

Let's walk through a recent short trade in SHAK.

On April 14, SHAK traced out an NR 7 Volatility Contraction Day.

This is the narrowest range in 7 days. These contractions in volatility often lead to explosions — and opportunities.

Just before that, on April 9, I spotted a new 10-day topping tail — something I call a “Lizard Sell Signal.”

I called a short on the Hit and Run Twitter feed — getting filled at $44.57.

The next morning, SHAK gapped down and we covered shortly after the open for a $2.88 overnight gain.

Whether you are a day trader, swing trader, or long-term investor, it is critical to look at multiple time frames when working a trade.

So let's drill down to a 10-minute chart so you can really see why this trade worked so well:

Notice that the Up Opening Spike on April 14 was tested, and SHAK just rolled over.

That's where we got short. Incidentally, SHAK also broke a key support trendline.

In this case, with SHAK, that telegraphed stock for sale — and gave us a nice profit in the morning.

Planet Fitness (PLNT)

PLNT has been in a persistent downtrend and tailed off below its 50 day line on April 14^th where it left a Lizard sell setup (new 10 Day Topping Tail).

Checking a 10 minute PLNT for April 14-15 shows that PNT found an opening Spike High followed by bearish Train Tracks.

Stock often carve out highs and lows for the day in the first 30-60 minutes so this is a key time frame to watch.

PLNT left a Late Day ORB on the runoff which telegraphed lower prices the next day.

An ORB is an Opening Range Break — a move either above or below the 1st half-hour’s range.

Notice that PLNT triggered an up ORB on the morning of 4/14 but reversed.

Then it triggered a down ORB late in the day.

These Late Day ORB’s can be explosive signals — Up or Down. And they are often tells for follow-through the next day.

It certainly was a great tell for a PLNT's big gap down on April 15 and we alerted subscribers to cover into the plunge, locking in a $4.54 gain overnight.

Next!

Akamai (AKAM) Long

AKAM was a long idea in the April 15 Hit & Run Nightly Stock Report.

The setup was a TNT combined with a Keyser Soze.

These are proprietary Hit and Run signals that do a good job of identifying explosive continuation moves.

A TNT (as in dynamite) happens gives an impulse or Thrust followed by a Noise Day (a consolidation or Pause Day) followed by another Thrust the next day.

A Keyser Soze (so named from the movie ‘The Usual Suspects' with all its plot reversals) is a Reversal of a Reversal.

Notice AKAM left an outside down reversal day on April 7 (B).

However, on April 14, AKAM offset the 4/7 reversal bar on a closing basis.

This was a bullish event becuase fast moves often times come from false moves.

Notice that the April 14 offset occurred on a gap ,underpinning the idea that AKAM wanted higher.

The next day AKAM traded inside and I used it as a long idea because I believed there would be Pin Action to the 105 strike if it cleared 100.

This is where a stock is pushed from one strike to another going into options expiration Friday.

A 10 minute AKAM below shows the play by play on 4/16.

AKAM triggered subscribers long from the open as it rocketed above 100.

Then it consolidated, tracing out a micro intraday Cup & Handle.

We sold half the position for a $2.03 gain. With our Trim & Trail Swing Method, we like to book gains on half a position and then trail the stop to see what else we can get.

When AKAM triggered an Opening Range Breakout (ORB), it exploded to the 105 strike and we sold the 2nd piece for a $4.16 gain.

Next!

Coups Software (COUP) Long

COUP was a long setup in the April the Nightly Stock Report.

The long idea was based on multiple setups:

1) On April 14 COUP left an Expansion Pivot buy signal. This is the largest move in 10 days above (or below) the 50 day moving average.

2) COUP also broke out over a declining trendline on a gap.

Subscribers were triggered long on an Opening Range Breakout the next day at 157.10.

We sold half as COUP struck the 160 strike, locking in a fast $2.90 gain.

Notice the textbook pullback that successfully tested the Opening Range Breakout. This set up continuation the next day where we sold the 2nd piece for a $7.38 profit.

Volatility has come out of hibernation offering tremendous opportunities for wealth building using my Hit & Run methodology.

You don’t have to be great to get started, but you have to get started to be great.

So if you're sick of Buy and Hold, Hit and Run: