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.
[caption id="attachment_1401" align="aligncenter" width="500" caption="General Electric (long term)"][/caption]
[caption id="attachment_1402" align="aligncenter" width="500" caption="GE"][/caption]
[caption id="attachment_1403" align="aligncenter" width="500" caption="GE"][/caption]
: http://traderpau.files.wordpress.com/2009/05/2009-05-14-ge_long.png : http://traderpau.files.wordpress.com/2009/05/2009-05-14-ge.png : http://traderpau.files.wordpress.com/2009/05/2009-05-14-ge_prop.png