Thursday, October 02, 2008

Trading NRBs - Flowserve Corporation (Public, NYSE:FLS)

I was away for the first hour and half of the trading session. I couldn't believe the blood letting when I came back. Anyway, on days like this, I just stick to the overall trend and wait for something to jump out at me. FLS couldn't find a bid today. I was waiting for a NRIB, but this was close enough. Look at the 1 minute chart and you can tell that this flat base is going to break down. FLS has a huge spread which causes a lot of slippage. In cases like this, and given the tight candlestick formation, I prefer to get in position before the actual break.

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