Hey, what’s up guys? Back in the markets today after a holiday weekend. The action still continues to be a little bit slow. I got held up by a little bit of a technical difficulty this morning on my platform. For some reason, I was unable to open new positions, couldn’t really get it figured out in time to capture a move that occurred, but that’s okay. The good news is, is that I was able to close the day just slightly in the green with the shares I got filled. That’s always a positive, not to be caught on the wrong side of a trade when your platform is malfunctioning.

Anyway, we’re going to talk a little bit about that today and also about the setup that we had because there was a really important technical moment that took place in this stock that you can use in your trading to locate these high probability setups. Let’s take a minute and break down today’s trade.

All right. Good afternoon, guys. I want to do a recap here this morning of today’s trade. Unfortunately, I had an issue with my platform this morning, and I kept getting error messages as I was trying to open up a short position on this AEO. I’ve gotten an error… Just for context, I’ve been using Light Speed here for almost 10 years. I’ve never seen this error once, so it’s very strange.

I was unsure as to what it really meant. The error message read “unable to open new position on symbol” and that was AEO. As I was trying to continue to punch the orders to get short on this thing it would not fill. Told me that I couldn’t open a new position, so I closed down and restarted my platform. I tried again, and I was able to open a position, but now it only allowed me to open a max of 500 shares. Then, I just got out of that because it filled me at kind of a wrong spot, and I didn’t really have that much of a position to sit around waiting for it because the stock doesn’t move that much. I needed a lot more size to make it worth my while.

I just got out of that. Then, I tried to figure out the platform issue, and I decided to call it a day because there really wasn’t much else going on. I’ll talk a little bit about the trade, but you could see I basically just got out of the trade. I was green thankfully. I didn’t get caught in a bad position going against me or something like that. That’s always a positive because I have had situations where the platform malfunctions or you have a hotkey malfunction or something goes wrong and you get caught on the wrong side of something and it can be very painful. I’m just glad that didn’t happen. The fact that I’m even flat and slightly green is always a good thing, but let’s talk about the trade itself.

Talk about where I tried to get in this thing and what I was looking for because it was a very good technical setup. There was a very good entry on this to get a nice trade-off, but that happens. It’s nice it doesn’t happen all the time. This is, like I said, the first time it’s happened to me in quite a while, but let’s take a look at the trade here and talk about the action that we had.

First off, AEO earnings gapping lower this morning. The first thing I notice about this is we’re gapping back below a recent swing low pivot. All right? When I see that, the first thing I do is mark that off because that is essentially the short term low for the stock. It’s basically taken out its lows.

But then I looked back and I see that we have this pivoted through here, which was essentially the entry to a very minor gap. It was a gap, but it was a very minor gap. But the fact that it was a pivot in that we had a test here and then we gapped up above that and we held that as support and then we ran, that’s a really important technical point. It lined up exactly with this recent low pivot. I wanted to use t