Tuesday, November 27, 2007

Whoops

Premise:

A stock pop up on positive comments only to quickly reverse.

For Shorts

  1. A stock must be trading under its 10-day and 50-day moving averages.
  2. The previous day's close must be below the open.
  3. Today's open must be at least 1/4 point above yesterday's close.
  4. Sell short at 1/8 of a point below yesterday's close.
  5. Maximum initial risk is 1 point.
  6. If stopped out, re-enter at the previous entry point (today only).
  7. If the stock moves strongly in your favor, move the stop 1/8 of a a point below the entry price; a stock that snaps back to being positive on the day could be staginga reversal and you don't want the profit to turn into a loss.

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