Make or break time for DV and ESI. If you have been following this blog, in addition to the bond funds providing interesting trading action, the educational stocks went from “watch list” to actionable today (see post earlier in the week regarding these stocks).
I consider an ESI a good short today because I see the RSI (ie., momentum) as likely too high (especially in this market) for ESI to break the all time high at 130. Plus we have a bear market. I like the odds. I’ll be keying in on DV to see if it climbs higher. If that goes higher, it is a good sign that ESI will consolidate and move higher. If DV fails, ESI will be coming right back down. Either way, today was an action point allowing a low risk entry point to manage risk.
More on this topic
(What's this?)
ESI Offers Great Example of Cup & Handle Pattern
(Stock Trading To Go, 2/12/09)
Bookkeeping: Short ITT Educational (ESI)
(Fund my Mutual Fund, 3/18/09)
Educational Heat
(What can I do with 10 grand?, 2/4/09)
Apollo Group’s Q1 2009 Results Come in Ahead of Estimates
(Bullish Bankers, 1/10/09)
