{"id":520,"date":"2009-04-16T16:54:10","date_gmt":"2009-04-16T21:54:10","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=520"},"modified":"2009-04-16T16:54:10","modified_gmt":"2009-04-16T21:54:10","slug":"relative-weakness-hog","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/relative-weakness-hog","title":{"rendered":"Relative Weakness- HOG"},"content":{"rendered":"<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/hog-04-16-09.bmp\" title=\"HOG 04-16-09\"><\/a><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/spy-04-16-09.bmp\" title=\"SPY 04-16-09\"><\/a>Relative Strength is a trade <a href=\"http:\/\/www.smbtraining.com\">taught<\/a> on most desks. \u00a0When you notice the market is weak and a stock cannot go down, this shows relative strength. \u00a0Conversely when the market is strong and a stock cannot go up, then we conclude it is weak. \u00a0Today we saw a relative strength play in HOG. \u00a0Let&#8217;s discuss.<\/p>\n<p>After 12PM SPY was strong. \u00a0SPY made a strong move from 85.50 to 87.10 after 2PM. \u00a0Meanwhile HOG failed at 18.70.\u00a0HOG failed at 18.60. \u00a0HOG failed at 18.50. \u00a0As the market was strong HOG could not trade higher. \u00a0Into the close HOG could not trade above 18.54. \u00a0Alex who sits next to me relayed its weakness to me. \u00a0<\/p>\n<p>I started a short position at 18.52. \u00a0Then the market came off. \u00a0SPY pulled back to 86.83ish, right to the trendline. \u00a0This trendline held the first time. \u00a0Later SPY retested 87.10ish but failed for the second time. Then SPY blew through the SPY 86.83ish level and its intraday trendline. \u00a0This fast and powerful downmove through the SPY trendline was our cue that the market was about to reverse.<\/p>\n<p>HOG cooperated and sank below 18. \u00a0I covered some at 17.91. \u00a0This is an easy trade. \u00a0HOG never traded above 18.54. \u00a0HOG was in an intraday downtrend. \u00a0HOG had the potential to fill its gap down towards 17. \u00a0So we had an excellent risk\/reward set up with our short. \u00a0When the market reversed HOG tanked. \u00a0When I saw some support at 17.90 I covered. \u00a0But the relative weakness that HOG demontrated as SPY traded up strongly was our evidence it was a short. Good job by Alex finding this relatively weak stock. \u00a0<\/p>\n<p>Best of luck with your trading.\u00a0\u00a0Don&#8217;t forget to <a href=\"http:\/\/twitter.com\/smbcapital\">follow us on twitter<\/a>.<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/hog-04-16-09.bmp\" title=\"HOG 04-16-09\"><img decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/hog-04-16-09.bmp\" alt=\"HOG 04-16-09\" \/><\/a><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/spy-04-16-09.bmp\" title=\"SPY 04-16-09\"><img decoding=\"async\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/spy-04-16-09.bmp\" alt=\"SPY 04-16-09\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relative Strength is a trade taught on most desks. \u00a0When you notice the market is weak and a stock cannot go down, this shows relative strength. \u00a0Conversely when the market is strong and a stock cannot go up, then we conclude it is weak. \u00a0Today we saw a relative strength play in HOG. \u00a0Let&#8217;s discuss. After 12PM SPY was strong. &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/relative-weakness-hog\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[4676,30,18],"class_list":["post-520","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-day-trading","tag-prop-trading","tag-smb-capital","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Relative Weakness- HOG | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/relative-weakness-hog\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Relative Weakness- HOG | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Relative Strength is a trade taught on most desks. \u00a0When you notice the market is weak and a stock cannot go down, this shows relative strength. \u00a0Conversely when the market is strong and a stock cannot go up, then we conclude it is weak. \u00a0Today we saw a relative strength play in HOG. \u00a0Let&#8217;s discuss. After 12PM SPY was strong. ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/relative-weakness-hog\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-04-16T21:54:10+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/04\/hog-04-16-09.bmp\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" 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