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Alpha-Sabrient Reversal Alerts
First Trade alert for tomorrow, Wednesday, June 30:
We are placing a stop loss on short position IAG at the entry price of $18.13. Buy to close if it trades at this price or higher.
Rationale: As a rule we will not use stops in the trades we select, but the present market behavior suggests that we ignore that rule for IAG, which was sold short at the open on June 25 with a fill of 18.13.
When we recommended the trade we were aware that there was support near the January 11 intraday high of 17.71. But our chart analysis identified a reversal and justified our sell short trade.
On the day of our trade, June 25, the stock rocketed through the open of 18.13 and closed at 18.57. The following day IAG made an intraday high of 19.31 although it closed lower at 18.43.
Today, June 29, the stock closed at 17.62 and is finally showing a profit, and we think the reversal that we identified is now in force. But with today’s strong overall down market bias, gold stocks may be favored and IAG may reverse up.
That is why we suggest that traders sacrifice the small open profit that we have today and close the short trade on June 30 if IAG trades at 18.13 or higher.
Second trade alert for Wednesday, June 30: At tomorrow’s open enter the following trades:
- JRCC – sell to open a new short trade
- TEO – sell to open a new short trade
Regards,
Luiz Alvim
About the Alpha-Sabrient Reversal Alerts
The Alpha-Sabrient Reversal System produces entry/exit signals for the 18 stocks in the Sabrient Top Stock Picks for 2010.
- Trading alerts are emailed only when they occur, which means you may go several days without any alerts.
- You will receive the alerts after the market close for execution at the next market open.
- As a new subscriber, you should ignore the open positions and start your trading with the first entry alert that you receive.
- A virtual portfolio update will be emailed during the weekend, giving you the open positions and previous trades.
Disclosure: Author has no positions in stocks mentioned.
Copyright (c) 2010 by Luiz Alvim
