I’ve been hot as of late and here is another great play in MET. I had MET on my daily list and price had gapped up at the open. Usually at the end of the year I attempt to tweak a few items in my trading plan. Last year I would not short a stock that was trading above its prior day’s close. This year I’m attempting to be more flexible and I’m letting the 60 minute chart decide if I can short a stock trading above its prior day’s close. The reason for this is that a strong rally or gap up like MET today will cause a huge void to the downside. Since MET was in a 60 minute downtrend I felt that I could short on a lower high or a possible buy failure pattern. My entry in MET was actually a GBI (green bar ignored) which usually leads to a measured move lower. I was short at 51.26 and price moved lower nicely with two risk units of profit showing in my open P & L, but I was holding for three. I had to set through a painful pull back but price rolled back lower and continued to move lower hitting my 3 R target at 50.75 where I covered 2/3rds of my position. I was looking to add and reduce but as price looked like it had bottomed out, I covered 1/2 of the shares I had left then waited for a higher pivot low. Well, my last prior high was taken out by more than .05 cents so I trailed out of the play at 51.25. A little over 2 “R”isk units of profit made on the play…
