Slingshots

Premise:

Identifies which new highs or new lows have the best chance of follow-through, this strategy takes advantage of breakouts that are initially not "real." Basically you wait for the weak hand momentum players to be flushed out before getting in the position.

For Buys

1. Day one: stock makes a new two-month high.
2. Day two: The market takes out day-one low by at least 1/8.
3. Day two or three only: Buy if the stock trades 1/8 above the day-one high.
4. Risk two points.

For Shorts

1. Day one: The stock makes a new two-month low.
2. Day two: The market takes out day-one high by at least 1/8
3. Day two or three only: Sell short if stock trades 1/8 below the day-one low.
4. Risk two points.