I’ve entered a short stop order just now set at $13.00. GE is hovering above $13.10 now. S&P500 bounced back about 1.3% today, as of this writing, after yesterday’s raid. However, S&P500 merely tested 900 and failed to go above it. This is definitely a strong sign for the bears.
Thus, I have decided to add to my short with GE. Why GE? See for yourself in the figures below. It satisfy my usual criteria for a setup. In addition, the risk/reward is great!
Entry stop: $13.00.
Exit stop: $13.30, short term resistance.
Target: $10, nice round number just above the long term trendline.
Reward / risk = $3 / $0.30 = 10 > 3.
In Figure 1, note the symmetry in the daily chart. The test of resistance below $15 failed miserably. Also note the Chaikin in the weekly for a huge negative divergence.
For Figure 3, observe that the recent uptrend is breaking. My entry of $13 is at the 25% point within the channel and it’s a recent support.
Update: My order is filled at 15:38 for average of $13.0042308 for 78 shares.
Update 2: I was stopped out at $13.30 on Monday, May 18 at 10:23 am.
General Electric (long term)
GE
GE
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My name is Paul and I am a full-time engineer, part-time trader. Back in 2000, I deposited my $5000 interest-free student loan with an online broker. Since then, my interest in trading has become an obsession.
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[...] from Figure 2, things are getting pretty congested around this 880 zone. Nevertheless, I’ve initiated a short in GE with a tight stop to catch this ride. I would need to see a more prominent lower high and [...]