Monday, May 19, 2008

MON - Great example of my favorite type of trade right now

Below is a trade that I unfortunately missed today. It's a great representation of my FAVORITE type of trade - shorting into resistance. These work great because there is big upside and little risk. Short it at 125 and use a mental stop above the HOD at 125.27. MON had struggled to get and stay over 125 this last week so there was a good chance it'd fail again. A little patience and a convenient market sell off and 3 points would have been made with about .30 of risk.

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