Thursday, January 6, 2011

Sell some, then sell some more

It seems like this is a good short, I sold some yesterday, and sold a little more today.  Why, Because the market agreed with me.

Not sure how far it will go, but I do know where I will cover. Broke opening range early in the month and sliced fast through prior months support.  Very bearish action and I could not help to add.


  1. I have a newbie question: Do you have a list of stocks that you trade that you are constantly checking to see if they have broke their opening ranges? Or, of the tons of stocks out there, how do you go about scanning all of their ranges to look for opportunities?

  2. Good question...First Read the Logical Trader, By Mark Fisher, that's where this method I write about came from.

    It's time consuming, but I look for pivot ranges that line up with the first day or two of the month or close to it. I also look for relatively narrow pivots compared to the prior month. Then I look for opening range to break either through pivot or against.

    Read the book a few times and you will know exactly what I am talking about.

    Right now I have about 1100 stocks I have listed, and scan the hell out of them...but that is too much. You can probably start with the 200 and of the 200, 25 or so should express these characteristics.