A Classic Trade Follow-Thru
When it comes to entering a short
position, I tend to focus on the negative. A lot of traders agree that shorts
can be more difficult to maintain than a long position. The reason why is beyond
the scope of my writing, and definitely open to debate. What’s not open to
debate is when intraday and daily technical conditions ‘flash’ a great
opportunity.
When ‘the stars are aligning,’ there’s positively
nothing that I enjoy more than finding one of those difficult shorts. You have to
be ready though, because if you’re unprepared it could be ‘over in a flash.’
In today’s very early trade, Intersil
immediately demonstrated some of the weakness that I pointed out yesterday
afternoon, in both our TM Chatroom, and my
Nightly Daytraders Report. The stock
broke a smaller late-day consolidation pattern off of a test of daily technical
supports, to form an extended double-bottom. The second bar of the day produced
the entry thru prior supports as the issue traded thru 24.47.
…and whoosh!! Market Flash. For those who were
ready, Intersil provided the kind of stuff that makes doing the work ahead of
time, all worthwhile.
Later on in the day, as the stock pulled back
from its lows, another setup presented itself for those who possibly couldn’t
get enough of a very good thing.
10:19:49
Intraday
Setup Alert
From the Nightly Daytraders
Report Intersil (ISIL)
broke quickly thru its bottom of range consolidation, extended from yesterday. This
lined up with daily technical supports in the form of the 50-Day EMA and prior
price pivots. The stock has pulled back from lows, and now appears ready to
resume its trend lower. ISIL is off 1.05 at 23.66.
Sometimes it just pays to be negative once in a
while.