One Of My Favorite Trades…
Today’s article was
written by Brice Wightman.
One of my favorite
trades is fading the counter-trend rally. I look for a stock that is
already weak, and then a gap down or a fast drop on the open. Schering Plough
fit that bill this morning. The company said earnings would fall next year, cut
the dividend, and announced a restructuring plan.
The daily chart was pretty weak; here it is:
After a gap down open, SGP started to rally.
I spotted this one, but made the call a little
early.
10:08:54
Intraday Setup Alert
Schering Plough
(SGP)
is staging a counter-trend rally. SGP is trading at 14.79, down 1.69.
As it turned out, waiting for a turn in the stochastics proved to be the smarter
entry.
Have a great weekend!