For multiple entries watch these 5 movers

Here is how it played out. El Paso reported that it lost $321 million, or 50
cents a share in the quarter. This compares with a loss of $214 million, or 33
cents a share a year ago. Due to this news of a widening loss, I was looking for
EP to be an active trader. I was going to let the market show me the reaction to
the news, especially if it approached its 200- day moving average of $11.44. On
Friday, El Paso closed at $12.01. It opened this morning at $11.50. This was
just above the support level of its 200-day moving average of $11.44. El Paso
traded as high as $11.66, but failed to really gather any momentum to the
upside.
(
EP |
Quote |
Chart |
News |
PowerRating) was weak by the way it was trading and lacked any volume to the
upside. When offers began showing up in the NYSE OpenBook as well as in the
inside quotes, I realized that there was an excellent opportunity to get short
at $11.41. I immediately placed a stop order at $11.50 to protect myself against
a loss. As EP gained downside momentum and more sellers began appearing in the
market, I added to my short position at $11.32 and $11.27. EP continued moving
down and when it broke another support level at $11.00, I sold more at $11.01.
The specialist seemed to have a cleanup print at $10.90. Large bids began
appearing in the market. As soon as this happened, I decided to cover my entire
position at the market. I was hoping I would get $10.90 but did not get filled
until $11.05. Even though I lost .05 on the last portion of my position, I had
added in the whole way down and was able to take advantage of the most
significant move that EP had during the course of the day.

Some of the moves I will be looking for Tuesday will be for EP to test its low
at $10.90.
(
JNJ |
Quote |
Chart |
News |
PowerRating) and
(
GDT |
Quote |
Chart |
News |
PowerRating) will continue to be trading actively as long as they
continue to have high-profile news. Also look for earnings in Caremark
(
CMX |
Quote |
Chart |
News |
PowerRating) and
TransOcean Offshore
(
RIG |
Quote |
Chart |
News |
PowerRating). If they are not in-line with estimates, I expect
these two stocks would be extremely active.

Mike Kestler

Please e-mail with any
questions you might have at

mkestler@evotrading.com

Michael Kestler is a full-time
professional trader and managing partner for Evolution Capital LLC., a
proprietary trading firm. Mr. Kestler specializes in intraday trading of NYSE
listed stocks. Before founding Evolution Capital LLC., Michael began his career
on the floor of the CBOE. Mr. Kestler was previously a Mid-Cap and Nasdaq Market
Maker.
www.evotrading.com