The markets have been overbought for quite some time and today was the day for some major profit taking. There was no real catalyst going into the session, but the first few bars were very persuasive. I noticed that all of the recent momo stocks were getting beat up pretty bad, so I took my biggest winner on the month and started stalking it for a low risk, short entry. I should have probably shorted it just before it broke through $44.00 as it would have been easier, but I managed to short at $43.85 with an initial stop at $44.25. I missed my planned exit near $42.00, so I covered on a minor bounce at $42.35. Notice how the selling took place on relatively high volume throughout most of the day, compared to the low volume accompanying the mid afternoon bounce.
Monday, November 27, 2006
Trade of the Day - Continental Airlines, Inc. (Public, NYSE:CAL)
The markets have been overbought for quite some time and today was the day for some major profit taking. There was no real catalyst going into the session, but the first few bars were very persuasive. I noticed that all of the recent momo stocks were getting beat up pretty bad, so I took my biggest winner on the month and started stalking it for a low risk, short entry. I should have probably shorted it just before it broke through $44.00 as it would have been easier, but I managed to short at $43.85 with an initial stop at $44.25. I missed my planned exit near $42.00, so I covered on a minor bounce at $42.35. Notice how the selling took place on relatively high volume throughout most of the day, compared to the low volume accompanying the mid afternoon bounce.
Subscribe to:
Post Comments (Atom)
2 comments:
I never cease to be amazed by your trades. That was cool!
Thanks Zoomie,
With the markets gapping down today and yesterday, my scans pick up everything as a short. Rather than fiddle with my filters, I just look at the stocks I know well and try to find a low risk entry point on a support break or support bounce.
Post a Comment