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SINA Trading Range Short Setup

|Includes: Sina Corporation (SINA)

SINA had a strong first bar of the day and then completely reversed below the open price of the day. When you see weakness like this, wait for the stock to rally near the low of the first bar of the day (but not over the open price), then short below the low of a previous bar, as SINA did when it traded below the 9:25am PST bar low of $66.27. The stop is the open price of $66.55. SINA traded down to a low of $64.80 for a maximum reward/risk of $1.46/$0.29.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.