We entered a full position of JP Morgan JPM short at $42.75 back in May. Yesterday at $37.98 I pulled the plug after a $4.77 gain. Believe me it was not what I wanted to do, but one look at the Bollinger Bands says there was nothing else to do. The shares came down to the Bollinger Bands and them pushed them outward. This is an extremely oversold condition carrying a high probability (actually higher than 95%) of a turn around at least for the short term. That is why we cover at the bottom of the Bollinger Bands.
I won't let a $477.00 gain turn into a loss, so, I covered and ran. For now we are out of JPM waiting to get in either way.
05-23-2011:
Sell short 100 shares JPM at $42.75
Buy at $37.98
05-23-2011:
Sell short 100 shares JPM at $42.75
Buy at $37.98
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