Profit From Wide-Range Days

GATX

Finally, here's the obligatory bearish chart. GATX had been trending lower for the past few weeks, but tried to stage a comeback last Thursday and Friday. Yesterday's action reversed the entire rally, and this stock closed below the prior low, paving the way for further declines. I'd consider shorting this now, with a buy-stop just above yesterday's high. If this stock eclipses yesterday's decline, then we probably saw a selling climax and there's no good reason to be short.

That's all from San Diego, where rumors persist that the Padres are a major league ball club. (But win or lose, I love 'em anyway!) Be careful out there.

---

Dan Fitzpatrick is a freelance writer who trades for his own account. His columns focus on quantitative strategies for trading and investing. Fitzpatrick is a member of the Market Technicians Association and authors The Stock Market Mentor, a newsletter focusing on the proper use of technical analysis for trading and investing. At time of publication, Fitzpatrick held no position in any stocks mentioned, though positions may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While Fitzpatrick cannot provide investment advice or recommendations, he welcomes your feedback.