Monday, August 07, 2006

Trade of the Day - F5 Networks Inc. NASDAQ: (FFIV)

I've been wanting to short FFIV for quite some time. Today it gapped down on the open and at 10:00 started consolidating. During the lengthy consolidation each 15 minute bar made a lower high, so I decided to short on the 5th 15 minute bar for a low risk entry. My stop was just above the high of the second 15 min. bar. I covered 50% as price started to bounce off of the $43.00 level. I held the balance until near the end of the session as the market started to push up from its afternoon lows.

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