I’ve mentioned I watch stocks closely when they near the area of the 50-day moving average. This indicator is going to act as support. Or, on a day like today, act as fuel for a meltdown, when the stock loses the moving average, and the Nasdaq is simultaneously diving. Yesterday, I flagged GROW near it’s 50-day m.a. It tanked below it today. Another stock I shorted, GRMN – Garmin Ltd, had multiple entries. I actually missed the 1st trigger, but caught the second one. My stop was placed above the day high, and moved down as Garmin broke each higher and lower pivot.
Notice how the 20 and 50-day moving averages parallel each other on the way down. The trend is your friend.
SWIR was stopped out, while homebuilders held up. MPEL told the market it wasn’t taking part in it’s decline.
