Let's take a quick look back at one of the trades from last week's column. A week ago, we were looking at shares of Chinese web company SINA Corporation (SINA) as our sole short candidate for the week.
Sure enough, the trade panned out as a way to book gains of around 9% from SINA's shedding points.
Essentially, we were looking for this stock to bounce lower off of trend line resistance and then take a short position as shares traded down through the channel to trendline support. Taking a short position in SINA last Tuesday would have resulted in gains of approximately 9% as of this morning.So where should you go from here? Right now, SINA is catching some support at the 50-day moving average. For risk-averse traders, now looks like a good time to take gains. Otherwise, trend line support at the bottom of the channel is still the logical exit target for the SINA trade. If you're going to hold out for a push further down the channel, consider putting in a trailing stop to protect your gains. To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV