Nasty Is As Nasty DoesFeb 13th, 2012 | By sspencer | Category: Steven Spencer (Steve's) Blogs, Trading Lesson
On February 7th we discussed CSTR in the AM Meeting. It was gapping higher on a better than expected earnings announcement. But the price action in the pre-market was erratic. There were no clear pre-market trends and when it moved above/below s/r levels it would quickly reverse.
This is a stock that I will not touch on the Open. Stocks have personalities. If a stock is whipping around in the pre-market there is a pretty good chance it will whip around when the market opens. Wait for the stock to settle down and establish a clear trend after consolidating. Otherwise you will be the stock’s whipping boy.
Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is firstname.lastname@example.org.
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