AM Meeting Synopsis: FDX is gapping lower on reduced guidance. Looks like it is going to open around 82.50, which is longer term support. Look to trade short below that level but if supports there look to trade long above 103.
The Open: FDX opens just below 102.50 so initiate a short. Maintain the position until the downtrend is broken.
Conversation with experienced trader: “Why are you long FDX?” “It always bounces after a gap down.” “Really? You keep statistics on that?” “No. Just from experience.”
The Close: FDX finishes at LOD
Moral of Story? You decide.
Steven Spencer is the co-founder of SMB Capital and SMB University and has traded professionally for 17 years. His email is [email protected].
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2 Comments on “I am a Simpleton”
102.50?
Yup and it opened below all support for the year. Looks like there is support at 97.50 area going back to 2011 but I consider those levels weak but likely could bounce small from there. Still it is now a broken stock for the time being. Nice trade.
Simple is good.