Friday, January 05, 2007

Dummy Trade of the Day - Endo Pharmaceuticals (Public, NASDAQ:ENDP)

SNDK was the first stock on my Web trader to turn green after this morning's bearish open. It sort of set the tone for my trading today. I didn't want to chase the shorts, so I concentrated on gutter stocks. My first long was SNDK on a pullback to the rising 10 period EMA. I waited to see some sort of continuation and entered long just above the doji stick's close.

ENDP was another gutter stock that made a nice move in the morning. I was able to catch the second wave after price consolidated sideways until the rising 10 period EMA came back into play, enabling a low risk dummy entry. The second wave was an orderly momo move on accelerating volume. I was able to move my stop to the low of the previous bar every 15 minutes. I exited my position into the close.

2 comments:

TradingGoddess said...

LOL! - "gutter stock"

Jamie said...

Seems like when the winners get hit with some profit taking, the losers start start crawling, or as in the case of ENDP, soaring out of the gutter.