[caption id="attachment_795" align="aligncenter" width="500" caption="Citibank"][/caption]
[caption id="attachment_796" align="aligncenter" width="500" caption="market intraday"][/caption]
Going long haven't been working out for me. So I'm going to stick in a short side trade to hedge my long positions. I chose Citibank because it's the obvious. It's a financial, and it just reported a massive 20% cut to its workforce. While that's good news in the long run and I typically go against the media, that strategy haven't worked well. That's why I'm going for the blatantly obvious this time around.
The TICK just marked a new high for the day but we're merely testing a local resistance. The downside seems more and more possible now. That's why I want to hedge my longs at this point.
Upside: Quadriple bottom forming. The company is accepting reality and putting in efforts to minimize future downside.
Downside: We are spiralling down. Continued market weakness seen in intraday data, Figure 2.
Bottom line: This trade is opposite of my usual strategy. Going short at a major support level is very risky. Yet, doing what i normally do hasn't worked for the past two weeks. So I'm just going to go with the flow and try a short side position to hedge my positions. As this is a Nov call, this is a short term trade with a stop of C share price \$8.40.
: http://traderpau.files.wordpress.com/2008/11/2008-11-18-c.png : http://traderpau.files.wordpress.com/2008/11/2008-11-18-spxintra1.png