A stock pop up on positive comments only to quickly reverse.
- A stock must be trading under its 10-day and 50-day moving averages.
- The previous day's close must be below the open.
- Today's open must be at least 1/4 point above yesterday's close.
- Sell short at 1/8 of a point below yesterday's close.
- Maximum initial risk is 1 point.
- If stopped out, re-enter at the previous entry point (today only).
- 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.