Long or Short: Short
Reason for Trade: First time for everything as this will mark the first time that I have ever taken a position in this absolute mess of a company and to the tax payers of the United States. Nonetheless, Perhaps we can make some of that bailout money back for ourselves by getting short at $28.44. I'm looking for a move down to its longer-term trend-line at $27, and possibly a move down to $26.50. There is a lot of support for this company between $24-26 range, so I'm not quite confident the stock will make a heavy dent into that range, but if it can get down close to that range, that would result in a great trade for us.
Of course I am cognizant of the current state of the market, and I may end up adding another long position to the portfolio to replace RDS.B that we sold this morning for almost 3% in gains (it reports this week so no need to hold it). The GM trade brings us to four total shorts with no long exposure.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>
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