Wednesday, November 4, 2009

11/04/09 GRMN Trade setup

Another quick review of a trade set up from today. This is similar to our RIMM trade from Monday. In the top chart we see a name that RIMM (in green)was weak intraday relative to the overall market (divergence). Notice the early move up in the S&P futures (in red) was not accompanied by GRMN.




In the bottom chart we see a breakdown on the daily chart. Once again we had several factors at our back to enter a short position in GRMN (daily chart, divergence/weakness intraday, post earnings). Our office was able to read this and enter short at various places between $31.00 and $29.00 for different trades.

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