{"id":6717,"date":"2010-08-24T15:11:09","date_gmt":"2010-08-24T19:11:09","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=6717"},"modified":"2021-05-11T15:31:51","modified_gmt":"2021-05-11T19:31:51","slug":"shorting-mdt","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/shorting-mdt","title":{"rendered":"Shorting MDT"},"content":{"rendered":"<p>We make trading decisions based upon three factors: intraday fundamentals, Reading the Tape, Technical Analysis. \u00a0I traded MDT today using all three to start two shorts. \u00a0These are trades that if I made 1000 times I would profit.<\/p>\n<p><strong>Intraday Fundamentals<\/strong><\/p>\n<p>We trade stocks with fresh news. \u00a0 Today we had new news with MDT:<\/p>\n<blockquote><p>Co issues\u00a0<strong><span style=\"color: #ee0000;\">downside guidance<\/span><\/strong> for FY11, sees EPS of $3.40-3.48, excluding non-recurring items, vs. $3.48 Thomson Reuters consensus.\u00a0For\u00a0FY11, based on estimated market growth of 3 to 4 percent, the co expects revenue growth in the range of 2 to 5 percent on a constant currency basis, down from 5-8% previously.<\/p><\/blockquote>\n<p>Missing on revenues is more important than the bottom line generally. When a company offers fresh news that its revenues for the full year will be worse than expected this is a candidate to finish at the low. This fact alone can cause the stock to trend cleanly and negatively for the entire day.<\/p>\n<p><strong>Technical Analysis<\/strong><\/p>\n<p>MDT gapped down to near 32. To find the next support level you must use a 2 year chart to find 30. On the one year MDT was below all support.<\/p>\n<p><strong>On the Tape<\/strong><\/p>\n<p>On the Open 32.20 held the offer showing an aggressive seller. And then there was a huge battle near 32.<br \/>\n<a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/mdt-1-nd-2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-6719\" title=\"mdt 1 nd 2\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/mdt-1-nd-2-300x193.png\" alt=\"\" width=\"300\" height=\"193\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/mdt-1-nd-2-300x193.png 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/08\/mdt-1-nd-2.png 844w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><strong>The First Trade<\/strong><\/p>\n<p>MDT moved away from 32 finally after a huge battle. It found 31.60, created a deep red candle on our intraday charts, and got us excited about to our short. 32.75 held the offer. This is a short. There is no support on the long term charts until 30 (maybe). Intraday the sellers have won the first two battles. The fresh news offers a potential pattern for MDT to close near the low. The trade is short 32.74 and hold until the intraday downtrend is broken.<\/p>\n<p><strong>The Second Trade<\/strong><\/p>\n<p>MDT traded weakly down to 30.85 after failing from 32. The market held the 1050 and 1040 futures level and bounced. MDT approached 32. Reshort is the play. When a stock has failed from a level, makes a sharp downmove and then later re-approaches this level we almost always re-short.<\/p>\n<p>Those were two excellent risk\/reward shorts in MDT today. If you have any questions or comments, please post on comment on our blog.<\/p>\n<p>Mike Bellafiore<br \/>\nAuthor, <a href=\"http:\/\/www.amazon.com\/gp\/product\/0470529407?ie=UTF8&amp;tag=smtr-20&amp;linkCode=as2&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0470529407\">One Good Trade: Inside the Highly Competitive World of Proprietary Trading (Wiley Trading)<\/a><img loading=\"lazy\" decoding=\"async\" style=\"border: none !important; margin: 0px !important;\" src=\"http:\/\/www.assoc-amazon.com\/e\/ir?t=smtr-20&amp;l=as2&amp;o=1&amp;a=0470529407\" alt=\"\" width=\"1\" height=\"1\" border=\"0\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We make trading decisions based upon three factors: intraday fundamentals, Reading the Tape, Technical Analysis. \u00a0I traded MDT today using all three to start two shorts. \u00a0These are trades that if I made 1000 times I would profit. Intraday Fundamentals We trade stocks with fresh news. \u00a0 Today we had new news with MDT: Co issues\u00a0downside guidance for FY11, sees &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/shorting-mdt\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":6719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[1314,4674,222,18,1193,653],"class_list":["post-6717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-mdt","tag-one-good-trade","tag-shorting","tag-smb-capital","tag-trader-education","tag-trader-training"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Shorting MDT | 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\/shorting-mdt\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shorting MDT | SMB Training\" \/>\n<meta property=\"og:description\" content=\"We make trading decisions based upon three factors: intraday fundamentals, Reading the Tape, Technical Analysis. \u00a0I traded MDT today using all three to start two shorts. \u00a0These are trades that if I made 1000 times I would profit. 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