Wed 29 Oct 2008
Yesterday, we talked about harvesting the weakness in Las Vegas Sands. Of course, the caveat was that we would have to see what happened in the early morning market. We've been burned so many times trading early in the morning off what looked like a continuation of a trend, just to be annihilated in the time it takes to drive across town.
Looking at the 1 minute chart for today:
Avoiding the first half hour, you'd be crazy to short into an equity that was up nearly 30. We stayed on the sidelines and watched as the short sellers squeezed in a vice to push the high of the day to twice the low of the day. Being more agile, and flexible we should have switched opinions and tried scalping throughout the day using a two to one risk to reward ratio.