Thursday, March 06, 2008

Today's Trade: CPLA (Short) and AKS

I went short 400 shares of CPLA at $55.68. This was a textbook short play that took a nose dive shortly after I entered. I bought after the stock's failure at the 200 day moving average. This is one of my go to patterns: broken momo stock, drops below 200 day moving average with heavy distribution. Enter on illusionary strength, meaning a bounce on low volume in the midst of distribution.

I also bought 300 shares of AKS at $54.64. The stock closed at $54.32. Steel has been on fire, so I am hoping we get a quick bounce back. My stop is tight, just under the last pivot low.

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