November 8th 2007
EDU Trading Idea
EDU has been on a tear recently. The stock is up over 30% since breaking out on 9/25. Unfortunately for EDU, the current stock pattern is ominous. Since October, each successive wave of buying has been on less and less volume. Since making an all time high on 10/29, EDU broke hard and is now retracing. This retracement will give us a low risk short opportunity.
Market direction is very important to this trade. If we continue to head lower in the overall indexes then shorts like this will tend to be successful. I expect that we’ll see a quiet day tomorrow, so don’t rush into shorts. Let the bear flags form. EDU has been a powerful stock, but even the most bullish of equities cannot stand up for long to the major market direction. I like EDU under 76.
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3 Comments »
thewild1 on 08 Nov 2007 at 3:56 pm #
just as you say that is has been hit huge today and already below 76.. nice call
Jonathan on 09 Nov 2007 at 6:19 am #
Thanks wild1. Now I just need EDU to get back below 76 and stay there.
Trading Ideas for 1/14 | A Trade A Day on 14 Jan 2008 at 12:02 am #
[...] more positive on EDU than I have in the past. I think this triangle is going to resolve to the upside, but considering that it is symmetrical [...]