Pimp My Trade

Short Idea: ESV

Posted on February 19, 2009 by Adam

I’m looking to short into a rally today, because I don’t think a rally will last very long. I think withing a couple of weeks we will be making new lows. Today’s strength offers a good chance to get short some stocks that have been weak.

I put ESV on the watchlist this week, as it’s formed a nice descending triangle. On Tuesday we saw a breakdown on good volume. Today it’s rallied right up to old support as new resistance. If it holds here, I’m going to take down some puts.

Look how prices have rallied up to the old base of this descending triangle. A nice entry point for a touch and go trade.

Happy Trading

Adam