I’ve received a couple email requests from people wanting a review of the $VVUS short I made.
I saw $VVUS breaking down right out of the gate, in the morning. I actually missed the big breakdown spot as it had tapped the $28.1 level several times and then broke. So what I did was wait for a bounce back into resistance intraday and shorted it there when it couldn’t break that resistance at $28.05. As long as that resistance didn’t break, I knew we had a good trade on our hands.
If you look at the daily chart you can see it was actually breaking down there as well. So that made the breakdown even more powerful.
To become a better short trader, send me an email at firstname.lastname@example.org and I’ll answer all your questions.