Wednesday, October 15, 2008

Trade Update: DIG

I took a small position in DIG today at $30.45. I usually don't like to buy big gaps down, but it has entered my initial buy zone and offers a good risk ratio for easy trade management.

As noted when I took profits yesterday at resistance, a pullback and retest of lows is to be expected.

As with all my trades of late, position size is small and stop is in place. There is a risk that the pullback becomes another bear leg down. Thus, I'm not willing to take a big position.

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