Use This Shallow Pullback In Your Trading
A small scratch is easy
to fix, but it takes time and a great effort to recover from major damage.
Remember Merck (MRK)? After the Vioxx incident, nobody wants to touch the
stock.
10:44:11
(From TradersWire)
Shanda Interactive Entertainment (SNDA)
is pulling back from the recent high and testing the 8-day EMA. Long SNDA above
40.83. The initial target is 42.60. Risk 0.5. SNDA is up 0.20 at 40.00.
SNDA is the totally opposite of Merck. The current pullback from the November 29
high is shallow. It is a minor scratch. In other words, the stock does not
require much of buy pressure to resume its uptrend.
Shortly after 11:00 AM, the issue took out 40.83, and we could manage to take a
partial profit about 30 minutes later.
11:30:57
Follow up on the 10:44 story (SNDA)
The stock has covered our initial risk. Take a partial profit, and move your
stop to breakeven. SNDA is up 1.70 at 41.50.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.