The Dow rose 57 points, or 0.6 percent, after dropping 7.3 percent in just the past two weeks and reaching its lowest level since October. Traders were looking to pick up stocks while they’re still cheap, but the buying was selective and there were more losing stocks than gainers on the New York Stock Exchange. The Dow rose as much as 172 points in morning trading but also fell into the red by mid-afternoon.
We managed to take advantage of the opening and make a couple of plays that may be quick and profitable. We shorted two positions when the markets were at their high. We shorted 200 shares of ADTRAN Inc (NASDAQ:ADTN), and 100 shares of Schnitzer Steel Industries (NASDAQ:SCHN). We carry a number of stocks on our watch list for this very reason. We love to short these dogs when the market pushes them up to unsustainable levels with the general market. Both have horrible looking technicals and are coming off new 52 week lows. Both stocks are down 2-3% from our entry and it shouldn’t be long to cash in some profits here.
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Disclosure: No positions