Wednesday, July 14, 2010

Playing the laggards



Another arrow in your quiver of trading techniques is to play stocks that are lagging behind others in the same sector.
I'm short ABX and it is dropping nicely, however GOLD is making new highs. Checking other gold stocks and they are all going down. So it is a high probability that GOLD will follow once the tricks stop. Waiting for that moment and short selling it brought a nice profit.
1st chart GOLD short






GOLD cover

1 comment:

bluecollartrader said...

The volume pop at the time of the short indicates others may have been "in the know" also... nice call.