I’m continuing to play my “irrational longs.” I entered my short position in FFG on Friday at the close and decided to book this today when it was down 7.5%. In this market, if I get a “no hassle” trade with a decent profit after 1-day I’m likely to take profits. I also liked covering FFG because it was a momentum meeting resistance trade. I’m really just playing the consolidation on a flag pattern. With that in mind, I don’t want to over welcome my stay. On the other hand, if this were a pure momentum short (RSI 93 trade) I would have been more inclined to stay around for day two. Why? Those trades have farther to fall from a momentum standpoint.
A couple of ideas:
SWM is now at RSI 91. There is fib resistance at approximately $51. I’m looking for one more up day which would make this a slam dunk short.
HSR is at RSI 88. This one is a small cap and thinly traded so it commands a very small position size. We’ll need another big move higher to get this over RSI 90.
I also had moved my stop up on LYG over the weekend. I was stopped out at the open.