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[ogm]

I always liked trading individual stocks more then ES futures. But everything was so correlated. From now on I expect it will be much easier to pick individual winners and losers. So I'm leaving the ES trading for my automated strategy, which seems to be doing fine for now, and moving on to picking individual winners and losers.

Lets start with losers.

ORLY.

The stock dropped like a rock on a day like today on heavy volume. That's never a good sign for a stock. They warned in June on weaker profit. I'll take a guess they are going to warn again.
Lets look at the charts. Looks like one of my favorite parabolas is getting busted. This can turn into quite a profitable trade. With 20 P/E its really not a value pick. I'd say 50s quite easily.
But closing the gap in the low 70s would work for me too to start with.

This seems to be a major trend change move as long term moving averages are crossing down.

Edited by ogm, 13 September 2012 - 08:02 PM.