My play of the day came in MS which I found on my gap play list as a Tier III type mortgage gap. As the market closed its first hourly bar with a red topping tail bar, I figured that the market would put in a second hourly red bar and therefore I was on the lookout for a stock that looked similar. Disney was my first choice but it was already down 10 hourly bars which is way past my 3 bar minimum to continue to play a stock in the same direction. Then I noticed that MS had closed its first hourly bar red after gapping up almost engulfing the prior days red bar. My method tells me to expect a 2nd red bar so when MS started to break down below the low of the morning I shorted MS @ .07. Price moved down rather nicely but then price action closed with an inside doji style bar on the 5 minute chart. As price finally took out the top at .03, I was forced into covering 1/2 of my shares with just a small profit. 10 minutes later MS triggered a second sell on the 5 minute chart where I added back the shares short and price moved lower in a flurry. My price targets @ .01 and .77 were hit where I covered 3/4 of my shares. About 30 minutes later another sell had triggered where I added back and reduced my stop but within minutes my breakeven stop had been taken out. Price finally did roll over again but since it was near lunch time I decided that I had taken enough out of MS for the morning....
