A Trade A Day

I’m in a bit of a holding pattern when it comes to long trades. I see a lot of good counter-trend longs that I could talk about. I’ll give you a hint. If you read my How to trade Hammers article and do a quick scan, you’ll see what I’m talking about.

My scans are also turning up several good shorting opportunities. Case in point: IBM

IBM has broken through its 50 SMA, typically a significant support level, and has begun to consolidate. This consolidation is a text book bear flag. Volume has died down after the initial move downward and now we’re just waiting for a break of the 111.00 area to initiate a new short.

This is a very text book pattern. Trade with the trend, if the Dow rallies and IBM breaks 111, the trade may not work out as well. While the trade is textbook, there’s still risk. I like IBM under 111.

See you Tomorrow!

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