Sorry to ask, but why are you shorting in the buy zone of an up trending Channel? Take a look at my detailed analysis of why bulls are still in control. The high volume spike was a fresh batch of buyers coming into this market, because it had a low volume test yesterday.
Didn't you short another stock in an up trending channel too? Was it FB?
Barker
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No problem, glad you asked. It was Macys that I was short.
Being that shorts are tough in this market, I keep my stops extra tight.
I am short here for a couple reasons. 1, the stochastics on multiple time frames are rolling over. Weekly included. 2nd, DD is just below major resistance at 67.90. A close above 76.90 would be bullish so my stop is 68.75.
Lastly, upward channels typically break to the downside. Conversely downward channels typically break to the upside. Here we have a upward channel. DD has recently made 52 week highs and is trading below strong resistance. I'm betting that the high of 69.75 put in on 6/9 will be it's high for a while.
Thanks for asking and please remember, it doesn't matter if the trade works or not. As long as you learn from it. Always learning.
EliteTrader101
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OK, You were short Macy's a bit too early, did you reshort at the top?
I still think DD needs to close below the recent lows before the bears win this battle, it may just pin off these lows today with the SPY.
Barker
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I did not re short.
EliteTrader101
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Great call on this short, I took a look at intraday 30min and 1hr and both were below the 200ma and ema before it dropped. Great lesson learned on this stock.
Didn't you short another stock in an up trending channel too? Was it FB?