Monday, November 30, 2009

11/30/09 AIG trade setup

Mid day update: today we saw one of our favorite trade set ups in AIG. Some simple characteristics that got us involved in this trade:

  • Break down on daily chart. Below is a daily chart of AIG going back to March 2009.


  • Intraday relative weakness. Check out posted chart, SPY (in red) makes a move up of the open (highlighted by the channel). AIG (in green) shows no sign of strength. This is a great timing mechanism. When market/SPY roll, AIG accelerates to downside.


  • AIG is a name in play and on people's radar.


  • AIG options trade in pennies, which is one thing Trading RM focuses on.

Sometimes the simplest set ups are the best ones.

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