As I said in my weekly stock picks review I still think STEC is a great investment, which has been driven down by a panic without any solid base and it will potentially go back to the levels around $40 – $45 or even higher as those fearful freaks in the market realize there was no need for panicking unless the new competitor hammers the company down, which won’t happen tomorrow, next week or even next quarter.
To buy back this stock I will use a technique called Trailing Bar Momentum Reversal Strategy… (uf) which simply means I will be trailing my buy order down a few ticks above the previous day high. STEC’s Friday’s high was at $32.95 so I am setting my buy order at $33.5. If the price won’t reach this level on Monday and the stock slides further down, I will set the new buy order for Tuesday based on Monday’s price high and so on as long as the stock reverses and starts rising again.
Let’s see what will happen tomorrow.
Making 45% Annually Trading Options Against Dividend Growth Stocks
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