Tuesday, June 27, 2006

Trade of the Day - BRCM (AMZN)

BRCM was very weak in the pre-market so I decided to short it if it took out yesterday's low. I covered into the close for a 1 pt. gain.

As noted in last night's watch list, AMZN will probably pull back to its MA on the daily view before breaking out of its base. I should have listened to myself. But no, I went long on a break of resistance at $37.20 and about an hour later I was stopped out at $37.08. After the first three bars, volume came back in and I had a strong feeling that this trade would not succeed so I kept a tight stop.

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