Wednesday, August 23, 2006

Trade of the Day - Research in Motion NASDAQ (RIMM)

Long RIMM on a break of the OR (opening range) high. I couldn't have been in the trade more than 5 minutes before it started coming back in fast, so I took my exit right away before it turned into a loss. The next bar confirmed that this was a failure so I started looking to take a short position because failures usually result in deep pullbacks. As soon as the next bar showed me a little continuation I shorted. My target was a retest of $78.00. By mid-afternoon that target started looking unattainable so I covered 50%. I was stopped out on the balance shortly thereafter.

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