This Is Why I Want To Wait For A Confirmation
I talked about Honeywell
International (HON) last Friday as a potential short for Today. As
you can see, the issue formed a bearish tail two consecutive days and looked
ready to resume the downtrend. Some readers asked me why I did not short the
stock at Friday’s close. Why do I want to wait till it slips below 33.50?
Yes, you could have shorted HON at Friday’s close. It is really up to you. The
stock is in a pullback from the October 25 low. A weak stock normally stages a
minor rally before it resumes its downtrend. Just place a tight protective stop.
If you can do that, nothing is wrong shorting HON at Friday’s close. I just
wanted to wait till a violation of 33.50 to confirm a resumption of the
downtrend.
By the way, if I sold the stock last Friday, I would be stooped out this
morning.
Have a nice afternoon session.
If you have questions, feel free to mail them to me.