Monday, November 30, 2009

Short Term Short BAC Revisited

On Nov 7, I posted "Short Term Short BAC". The close on the previous day, Friday was 15.14. Monday, opened higher and could have been shorted at 15.33, stop was hit the same day at 15.75 for a 0.42$ (2.7%) loss. Another excellent short opportunity is presenting itself for those so inclined. There is a short term gap at 15.90 to be filled, with resistance at the recent downtrend line which currently is at 16.40. Target is 13.70, so with an entry above 15.91, risk/reward is 0.217 or reward is almost 5 times the risk! It did not work out before, but it may pay to try again as eventually odds like this should pay out.

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