Tuesday, February 20, 2007

Trade of the Day - C.H. Robinson Worldwide, Inc. (Public, NASDAQ:CHRW) and NYSE Group, Inc. (Public, NYSE:NYX)

CHRW was a HCPG pick and it played out exactly as they expected and explained in their newsletter (Nice work guys!) CHRW gapped up and immediately started coming back in. It held support from Friday's afternoon low and started to move back up. It conveniently carved out a small stick prior to breaking through Friday's high on an uptick in volume. I set my stop just below the previous bar, entered a dummy long on the break, and watched it take off. I exited in early afternoon after it printed a long upper shadow and broke a three bar support level.

NYX was a Cup & Handle breakout on an uptick in volume. I have been watching this pattern develop over the last two sessions and my patience paid off with a 2 pt. move. I had checked the daily timeframe and new that the target was situated somewhere between the downsloping 10 day EMA ($91.66) and the bearish gap closure from Feb. 9th ($92.07). As it turns out, today's high was $91.98, very close to my exit. I exited shortly after NYX failed to take out $92.00.

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