Friday, May 1, 2009

BGZ Trade Exit

While there are no short-term extremes either way right now, staying in counter trend trades is dangerous, and obviously the safest thing to do is to get out as soon as things don't do what you expect. When going with the trend I typically don't suggest tight stops or exiting without an indicator signal, but counter trend trades are different. At times the pullbacks are so weak that they don't ever register an exit signal and you get strung along.

So I don't know what next week will bring but I want to err on the side of caution here and wait for a new short-term extreme one way or the other before making potentially a new trade.

Exit the current BGZ trade ASAP with a market order. Current price is 43.85.


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