Thursday, October 26, 2006

Dummy Trade of the Day - Garmin Ltd. (Public, NASDAQ:GRMN)

I like to stick with my winners, so when GRMN gapped up and immediately reversed back down to retest yesterday's high, I was on the lookout for a low risk dummy entry. As soon as things settled down and price tagged the rising 10 period MA, I went long. It was a slow, but smooth ride as price stayed just comfortably above the MA throughout the session. I exited the trade into the close. Notice how price maintained a 45 degree angle for most of the session until after 3:00 when volume picked up.

Another gapper, this time from a scan. I waited until CHS reversed off of the rising 10 period MA and took a dummy long entry. Exit into the close.

AFFX was another name I picked up from the gapper scan. I went long as price crossed $26.00 after a few very NR bars. Shortly after I entered , price pulled back to the rising 10 period MA. The price action was so slow, I thought that it was going to lose its momentum, but things picked by mid-afternoon.

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