Wednesday, October 01, 2008

Trade Entry: POT

I entered POT today as a bounce play at $125.10. As I have been preaching, postion size is small.

Reasons for entry:
1. Stochastics oversold
2. Extreme weakness today
3. Positive divergences in RSI and OBV (indicators are making higher lows while price is a lower low).

1. Continuation of downtrend
2. Negative market reaction to tonights bailout plan.

1 comment:

Raja said...

MOS is down 20% AH on earnings. POT is also down to 115. I thought I will bring this to your attention. Btw, I am subscriber to your report and am learning a lot. I have the utmost admiration for your trading style.