BAY trade setup

Discussion in 'Trading' started by MondoTrader, Feb 27, 2003.

  1. its a 3 gap play and an island bottom, and the short covering is starting. I think all 3 gaps will be filled on the bounce. Ordinarily I don't buy dead cat bounces, but when there are 3 open gaps that close together on a large liquid US stock, it makes a high percentage trade. It closed at 13.42 and I think its going to around 16.50, so there's 3 pts in it. I would put in a one point stop loss and sell if I get 3 pts, 3:1 risk reward.
  2. its hanging in there pretty well, i figure if its going to tank it will be today or monday. Anybody else playing this ?
  3. Interesting chart - interesting enough to spend some time looking into what is going on over the weekend and possibly take posn next week.

    Btw, what is going on?? Why is a healthcare co. with sizeable dividend tanking like that? And so weak on an other wise strong a.m.

  4. Ok, if your still in this you got a nice surprise. That lawsuit had some nasty implications though ... might chalk this one up to luck.