These 4 stocks may have multiple entries

Here is a little glimpse on how I traded CI during the first few hours of the
day. CI closed at $117 on Tuesday and was indicating to open up between $108 and
$110. When CI opened up down at 109.10 there was a large offer in the Open Book
at $109.26. When a stock opens up incredibly lower then where it closed the
previous day, I am always looking to trade it in both directions. You either
want to go long in anticipation of it filling in some of its gap, or remain with
the trend if the sellers continue to come into the market. Since there was a
large offer at $109.26, I decided to stop that price to go long in anticipation
of a bounce. When large sellers began to appear in the market and CI failed to
bounce I decided to go short and look for the trend to continue to the downside.
I was able to establish a short position at $109 and the NYSE specialist dropped
his bid to $108. Unfortunately I covered half of my position at $108.70 before
he dropped his bid down to $108. When CI began printing $108 I sent a market
order to cover the remaining portion of my short. Unfortunately, as soon as I
covered my short, CI dropped his bid another point to $107 and eventually down
to $105.10. There were a few times that I tried to get short CI as it was in its
free fall but I was not able to get a clear entry point and with the stock
trading down over $10 it was definitely extended. I switched my mind to looking
for an entry point to go long in anticipation of a bounce. It wasn’t until my
third and fourth attempts that I finally got a substantial bounce from CI.

Mike Kestler

Please e-mail with any questions
you might have at

mkestler@evotrading.com