I placed a short entry stop for SLB at 14:43 today for -0.20 trailing on the mark. The short triggered at 12:54 for \$50.56. But then at 15:45, exactly 15 minutes before the close, SLB and the market made a dash for the resistance. My exit stop was triggered at \$50.99.
Short entry: \$50.56
Reward / Risk = 10.56 / 0.43 = 25 > 5
My loss in this trade is about \$10 + \$10 for commission.
Even at the close, SLB (and the sector ETF, OIH) closed merely up 1% while the overall market jumped 2.4%. I took Tim Knight's suggestion on OIH, analyzed it, and then picked it apart by examining the underlying components of the oil services ETF. I found SLB to be particularly vulnerable and the reward/risk was good. So I placed the stop orders.
I might try again tomorrow.
[caption id="attachment_1580" align="aligncenter" width="500" caption="Schlumberger"][/caption]
[caption id="attachment_1581" align="aligncenter" width="500" caption="Schlumberger"][/caption]
: http://traderpau.files.wordpress.com/2009/07/2009-07-13-slb.png : http://traderpau.files.wordpress.com/2009/07/2009-07-13-slb_prop.png