Monday, November 30, 2009
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.
Labels: AIG, setup, trade example
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