Wednesday, April 15, 2009

QID Trade Modification

I am not going to go into much detail right now, but I am going to suggest a change in the trade management of the open QID blog trade. In sum, this trade was/is an attempt to "pick a top" of this rally, or at least a good short-term top. However, the market has been responding weakly to overbought type readings which often indicates underlying strength. I still feel that more downside is most likely in the coming weeks, but I want to err on the side of protection right now. After a nice string of winners in a row, a small loss (if it comes to that) won't be a bad thing.

Trade Modification....

Cancel the limit order on QID and place a "sell stop" order at 41.32 in its place. This will allow the market to continue in our favor, but will limit the loss to about 4.5% if it gets stopped out.


Pete

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