Friday, 25 January 2008

The One That Got Away

What do you call the act of monitoring a stock from its setup to the time it moved and you still didn't do anything about it? Stupidity. That's what I call myself for letting Expedia, Inc. (Nasdaq:EXPE) get away from me.

This online travel agent was going up steadily until October of last year. It created what is known as a double top. Seeing that, I was already planning on shorting the issue once the neckline at 27.49 was broken. On Jan. 10, EXPE broke the neckline but where was I? I was out paying my respects to my godfather's father who passed away recently. I'm not making that an excuse, but rather my stupidity was for forgetting about entering a programmed order for a stock that I knew was about to go down. Hence, opportunity lost. For the trader, this is an unforgiveable sin. So now, I can only look at it and hope that it rallies back to the neckline so I can have another opportunity to short it.

But the way it looks, the momentum for EXPE is accelerating downward as can be seen with its MACD. It hardly looks like there would be any semblance of support at current levels. Looks like this is going in the direction of where many airline stocks are also going...

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