Downgrade Strategy (Day 3)
Sorry I didn't get this posted yesterday. Briefing had nine downgrades/missed earnings before the open. As I found on the previous 2 days, those that didn't gap down didn't work. (NBIX, FEP, TOW) The remaining six gapped down substantially, and could have been played for a profit, with 1/2 of those good for a point. For the most part, these would be in and out in the first 30 min. So far all three days I've looked at were days where the futures indicated up openings.
Symbol, Close, Open, Low, 30 min. High, Close
GHV, 14 13/16, 11 1/4, 10 1/4, 11 3/8, 11 1/16
SMS, 49 7/8, 48 5/8, 47 1/4, 48 3/4, 47 3/8
CERN 23 9/16, 20 1/2, 20, 21 1/4, 21 1/8
FHCC 23 1/8, 17 3/16, 17 3/16, 18 1/4, 17
OFIS 8 5/8, 6 7/8, 6 9/16, 7
DK 8 1/8, 7 9/16, 7, 7 1/2, 7 9/16
Walter-
For the time being I'm looking at these in hindsite, so I don't have anything to post before the open. If I convince myself that I want to pursue this strategy, then I'll papertrade and start posting in real time. I've gotten so comfortable with using the Gap Strategies and just mechanically taking my lumps or profits that I'm not sure I want to get back into that picking bottoms and tops in the span of 30 minutes with my gut. WEN, KTEL, and PAIR were very profitable, but not necesarilly comfortable trades.
Jay |
