GE: Shorted at $13.35

This is the third time I’m trying to short GE within the past two weeks. I’ve shorted GE with a limit order at $13.35. Notice that this is the first time I’ve broken my rule of using a stop for both entry and exit since using it a month ago. However, I have a very tight stop this time at $13.50. The reasons are as follows:

1. Intraday double top and Advance-Decline negative divergence in Figure 1.
2. XLF is failing to break above $12.00 all morning even as the market tries to push higher.
3. Today’s morning high of $13.42 fits in all too well with the trendline of Figure 2.
4. Signifiant GE Level-II ask at $13.30 just before breaking and the obvious trading range between $13.00 and $13.50 these days, Figure 3.

Short entry: $13.35

Exit stop: $13.50

Target: $11.50, same as before since the setup is the same.

Reward / Risk = 2.0 / 0.15 = 13.3 > 5.0

Update: I got stopped out at 15:58 at $13.50. GE and the overall market made a dash upward in the last few minutes today.

S&P 500 intraday sentiments

General Electric

General Electric

GE: Short entry stop @ $13.35

I’m giving GE another try. The up-move today seems running out of steam based on intraday sentiments and my observation with XLF testing $12.09.

Update: The TICK just tanked but the price remained elevated. I’m having doubt about this up-move ending soon.

Short entry stop: $13.35

Exit stop: $13.61, high of the day

Target: $11.2. This is lower than my previous $12.50 target because if we break below now, we would have successfully tested the top of the $11.50 – $12.70 congestion zone (today’s low was $12.85). That’s why I’ve extended my target to the next zone.

Reward / Risk = 2.15 / 0.26 = 8.27 > 5

Update: My entry stop was triggered at 15:42. I’ve shorted 75 shares of GE at $13.35.

Update May 27: GE tested $13.50 at the open then $13.00 in the afternoon. I’ve moved my stop tighter to $13.28 based on hourly chart of last few days. We seem to be range-bound these days, so I’m setting my exit stop closer to book the profit.

Update May 28: I’ve been stopped out at 2:36pm at $13.27. I’ve lost about $3.00 after commission. The market is bouncing like a ball as I’ve suspected. The only stocks in my small watchlist moving in a trend seem to be SLW and TCK (precious metal and commodities).

General Electric (intraday)

General Electric

BOUGHT +74 GE @13.58

My stop at $13.58 was triggered just now for a small profit shorted at $13.93. I’m thinking of entering again at $13.39, just below the intraday support at $13.40. But I’m also looking at XLF. It seems to have more potential with fewer resistance on the way down.

General Electric (short term chart)

GE: Short entry stop @ $13.93

I have moved up my entry/exit stops for GE once again for a short position. The analysis remains the same as before.

Short entry stop: $13.93

Exit stop: $14.13, intraday support as of now

Target: $12.5, I’ve raised it to a short term support (Figure 1, on hourly chart) from a previous intermediate term target.

Reward / Risk = 1.43 / 0.2 = 7.15

I seriously considered entering long into SLW instead. But with Gold hitting resistance at 940, it’s better to wait until it broke above it before joining the run.

Update: My entry stop order was triggered at 12:01 pm. I have shorted 74 shares of GE @ 13.93. Because of the verocity of the intraday down move (GE moved from $14.13 to $13.90 in 20 minutes), I’ve moved my exit stop to $14.23 expecting some sort of retracement to wipe the bears.

Update 2: I’ve moved my exit stop down to $14.20 just so my R/R can be above 5.0.

Update May 21: GE tanked over 3% on the open. I’ve tightened my exit stop slightly to $13.90. I’m inclined to move it closer to the mark later today after seeing how it moves intraday. This trade is working well so far.

Update: After a quick peek at 11:10am, I’ve moved my stop to $13.75. GE is hanging around $13.30 this morning. Next up at $13.50 is a significant short term resistance. My $13.75 resistance is the one after that, and it’s also the top of today’s gap down open. So if it gets taken out today, then this break down is very questionable. My intention is to hold this for a swing trade, so I don’t want to trade too much.

General Electric (1 min. chart left, 1 hour chart right)

GE: Short stop entry @ $13.14

I’m giving my GE short another try since being stopped out this morning. I have considered VE, USO, and OIH as alternatives for my short position. But GE offers the least resistance on the way down. Actually, USO and OIH seem decent, but USO is hard to borrow and OIH’s reward/risk isn’t as good.

Short stop entry: $13.14, obvious intraday support at $13.15 from the minute chart (not shown)

Exit stop: $13.50

Target: $10, same target as last week.

Reward / Risk = 3.14 / 0.36 = 8.72 > 5 (I am raising my R/R threshold for now because of the volatility)

However, I doubt my entry stop would be triggered seeing how strong today’s up move is. The upward momentum seem pretty strong to me with a strong positive average TICK and the price is holding even at the low TICKS so far (Figure 3).

Update May 19: This entry stop didn’t get triggered yesterday. I am givingi it another try today again with a short stop entry @ $13.14. But I moved my stop a bit higher to $13.60, the support for this morning. The reward/risk should be still above 5 for this. Today seem to be a range-bound day for the market. So I didn’t move my entry up as I’ve pondered about using $13.40 as entry instead. I only want to enter when the trend is clear to minimize trading.

Update: I’ve upped my stops to $13.30 for short entry and $13.76 for exit to correspond with the now elevated level of GE (topping around $13.80 as we speak) and the not that strong of a rally in the market based on intraday sentiments.

General Electric

General Electric

Market intraday sentiment