This was another near perfect setup for a shorting opportunity. My favorite short setup plays are huge rallys that halt near a strong resistance area. Its a pretty reliable pattern to trade with. Its very similar to the last few short day trades that i made on MFN and MVG detailed here.

Todays successful day trade was a short position on RZ which i alerted to Black Service members last night about the potential in this setup. RZ began falling as soon as the market open as i expected it would due to the fact futures were weak over night. Went short at 7.98 once it started breaking wednesdays low, we saw RZ fall as far as 11% today but i got a little greedy like we all do sometimes and was hoping to see the stock rebound and then fall again once it hit 13ema resistance on the 10minute chart. Once it became clear this wasn’t happening alerted black service members i covered at 7.69 for a nice 3.6% day trade gain.

Technical Analysis:

Looking into tomorrow its going to be a very interesting day. Not gonna reccomend anything for tomorrow cuz who knows what the hell is gonna happen. Its hard to say if the markets will even rally if the bill gets passed being that there is so much negative sentiment against the bill. In any regards, lets hope we get this bill passed and the market stabilizes so we can start making some serious money!

Lets get past all this monkey business eh? Washington needs to get out of Wall St!

Tags: day trade, mfn, mvg, RZ, Technical Analysis

This entry was posted on Friday, October 3rd, 2008 at 1:10 am and is filed under Day Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.