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.
[caption id="attachment_1434" align="aligncenter" width="499" caption="General Electric"][/caption]
[caption id="attachment_1435" align="aligncenter" width="499" caption="General Electric"][/caption]
[caption id="attachment_1436" align="aligncenter" width="499" caption="Market intraday sentiment"][/caption]
: http://traderpau.files.wordpress.com/2009/05/2009-05-18-ge.png : http://traderpau.files.wordpress.com/2009/05/2009-05-18-ge_prop.png : http://traderpau.files.wordpress.com/2009/05/2009-05-18-intraday.png