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Post by Admin on Apr 19, 2015 12:03:03 GMT -5
In hindsight, I didn't "look left" long or hard enough on April 16th. If I did, I would probably have seen that all we had was a partial close of the gap and not a full close like we got this past friday. A: Intraday volume was suggesting that buyers were starting to show their hand + WMT was sitting in a near term oversold situation at support & it was close to filling a gap. So as soon as the sellers stepped away mid session, I saw some buying creeping in and joined them and took the signal. I would only see later in the session that the sellers came back with more shares to sell below the 79.50 area but I figured that if the buyers continued to take all these shares off their hands into the close without lowering the bid, then we would be in strong position the next day. Text book stuff. B: However, we opened lower the next day ( due to broader market issues) and the buyers were no where to be found. Many of the previous days buyers were now scared sellers and I got stopped out. I must also point out that many funds out there have programs that automatically sell a stock once it gets a certain % below the 200DMA and I think that triggered for WMT. Never the less it is looking heavy on the short side now and even if it goes on to trade lower under the 200DMA, there is still a very high probability that we will see an attempt to take out some the stops ( up to the 81.00 area) set by short above and shake out some of the late short positions.
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