Monday, June 22, 2009

Interesting situation. Stock - WCG

I want to acknowledge that i am not experience stock daytrader. So this situation looks pretty interesting for me. Need to know what behavior to chose when we see something like this. Market in stong down trend, WCG too. I was looking to this stock as its in our portfolio with short position. Nothing special beofre 18-00 Kyiv time. After big down move volume sharply increased and we saw 25c up move. Hm..Sell? Not sure but lets suppose that we sold this for example @17.63. We know that this stock is weak fundamental, so why it will be attractive even intraday on this strong down trend? But if we were enetered @17.63 we should have stop loss , coz up move didnt stop. Ok. Lets look for some bearish candle and volume fading. At price 17.85 we saw something like this. Short again! But again we have stop loss on new uup move and big volume! Heh. What it was? Just fund's buying large stake? Or maybe some speculation? When i am writing this post price comeback down to 17.7$.

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