Trade of the Day - F5 Networks Inc. NASDAQ: (FFIV)

As per last night's watch list, I shorted FFIV shortly after the open when when it took out yesterday afternoon's low. When price took out last Monday's low, I was very optimistic about reaching $45.00 by the end of the day. I booked my usual 50% profit after a 1 pt. gain. I was surprised when I came back that I had been stopped out. FFIV rallied all the way back to $47.00 which was former support and then fell again. This time it made a higher low. Volume started to pick up on the long side heading into lunch hour so I jumped in. I took my profit on the first signs of weakness and decided not to trade the afternoon because Friday p.m. is usually range bound.

I've highlighted the intraday pivot point with a red line ($47.00). It will be interesting to see how FFIV reacts to this price level going into next week. Thanks again to Dave for pointing out the bear flag setup last night.

ENER, our other watch list stock, gapped up on a UBS upgrade to outperform. For me, the gap was too wide and it invalidated my setup. It was tradable after the gap fill for a nice gain but I didn't trade it.