Friday, March 13, 2009

SHORT FAS

Shorted: 4.82, 4.80, 4.89
Covered: 4.90, 4.75, 4.68, 4.63

Reasons for shorting and covering:
  • big selling early morning in financials; profit taking after monster run in last few days
  • fas broke down wedge at 4.90 at 11:45am, waited for bounce to enter my first short position at 4.82
  • doubled short position at 4.80, after the stock failed to bounce to my offer price of 4.85.
  • fas surged back to 4.90 to prior resistance after entering my position. Still had conviction that it would crash since the bounce was on low volume.
  • I was forced to cut my position to half at 4.90 to lessen losses, as fas exhibited further strength at the 4.90 level.
  • got back in and doubled my position as soon as I felt my prior analysis was wrong. doubled short position at 4.89
  • Stock started crashing and I covered along the way on selling strength. Got out the last position after FAS found support at approximate 20dma around 4.66...I covered at 4.63.

Update:
  • started bouncing after reaching its low of 4.59
  • good trade, had to cover fast since the overall short term trend is still up.

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