Yesterday I showed you the possibility to make a short trade of OGE Energy Corp after bad earnings.
Today I want to show you the possibility to make one of more intraday correlation shorts of this stock.
In my previous ideas, I showed my vision of correlating moves. There are a lot of companies, which reflects the overall market condition and are good for correlation intraday trading.
But after the good news, some companies more tend to go up with the market than do down. After the bad news, like in the case with OGE, companies tend to go down with the market than go up.
Look on the SPY and OGE charts. Yesterday OGE was going down while SPY was going down. While SPY was going up, OGE was in the flat.
Following the correlation trading strategy, it is reasonable to wait for correlated support level breaking. When SPY and OGE simultaneously break their support levels, It will be possible to short OGE.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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Gap down was big enough, so I reviewed actual support levels.