Turning A Negative Into A Positive
What is a good way to add another edge to a potential trade? By selecting a
stock that is showing good relative strength, and shrugging off negative news.
10:49:48
Intraday Setup Alert
eBay (EBAY)
is pulling back from its intraday highs after triggering a successful News
Reversal. The stock is facing resistance from yesterday’s intraday
consolidation. EBAY is up 0.43 at 58.58.
eBay gapped lower on the open after lowering its earnings forecasts for 2003.
However, when the stock traded back up through Thursday’s low and triggered the
news reversal, traders could have been tracking the stock for an intraday setup,
based on the exhibition of strength.
The pullback is short, but powerful, as the stock exploded to
the upside for an additional 1 1/2 points after the alert. Keep stocks that show
strength in the face of negative news on your radar. Even if you miss or don’t
trade news reversals, there is often another spot to exploit the move to your
advantage.
Have a great weekend,