Trade Review - RAX - May, 09

Stock Selection Information

Mid-Morning Market Update: Tesla Soars on Earnings as LivePerson Gets Crushed
Morning Market Losers
UPDATE: FBN Securities Downgrades Rackspace to Underperform Following FQ1 Miss, Lower FQ2 Guidance

Watch List Reason - Earning released yesterday after market closed

Pre-Market Volume - 10%

Trading Plan - Strong  support @ 41.00. It fail to hold above this level after testing it, so my plan change to short it.

Management

Entry Setup used: Open range break down

Trading Comments

Stock made a strong move down on earnings and consolidated yesterday. Today during pre-market it consolidates below yesterday´s range. After the open again it consolidated below the pre-market range. So I shorted when I saw a strong seller coming in around 40.25

Evaluation

It was a very well executed trade. I could´ve held it longer, but it was before 10:00 and my target was the projection of the range down for a .50 move. When it hit my target I got out. I was risking .07 cents to make .50. this is a very good risk / reward trade.