Monday, February 28, 2011


hypothetical trade:

gap down --


starts to recover, pulls back
at PRECISELY 11 AM - creates a 3rd touch on lower trendline -- possible entry with .10 stop - goes on to move 1.30 - with no pullback

key: waiting for 3rd touch, waiting for 'on the hour' moment.
also: internals were mixed -- leadership was notably weak - to support going short.  Gap up open (in IWM) exhausted buyers.

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