C was downgraded and the whole financial sector moved down at the open. In the 5min chart, C took S1 right away, consolidated below the 5 EMA, and set up a dummy entry just below S1. C plummeted right away on ascending volume. I exited at S1 because C had already printed three long, red bars and volume was at its pick for the day.
Another interesting thing was that in the 1 minute chart it was clear that the stock had hit the bottom at ~$24.25. I was very tempted to go long around 1:10pm, but I remembered what a trader told me a few years ago about picking tops and bottoms: “Don’t try to be a hero.”
4 comments:
Beautiful! I like the broker group down move with the C downgrade which I didn't know about then. WOW auto short! Last nite I WL'd coals brokers shippers ferts solars on one chart page so I could see movement: 5"/15" charts. BTW, my rule is if I make money on the downside(or upside) then it's ok to take the opposite trade if it shows itself. All the brokers took off and look good on a 1" chart with 13/50 ema. Love the power. Didn't effect the gappers much.
Thanks BL!
It is a good idea to do a WL by sector.
Cheers,
Great blog........
Quentin
Thank you Quentin!
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