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Wednesday, May 31, 2006

Update - ENB NTGR

ENB climbed from the opening bell from $31.03 and and had an initial peak of $31.87 by 9:45am. It then fell to $31.27 by 11:11am. It did have another higher peak followed by an even lower low than the first, but the trade would be over before the 2nd run had a chance to take off. The stock did trade mostly above last nights after hours prices. Very likely a result of the stronger market today, although the drop in oil didn't seem to hurt this stock. Even though there was an opportunity here, shorting oil related stocks isn't a good idea. Imagine if this were an up day for oil??

With NTGR, although there was 2 spikes early I still followed the ANGO no short rule (see My Shorting Rules link on the right hand side for details on this rule). NTGR saw a low of $22.50 (.18 cents higher than lasts nice price range) right at the opening bell before an initial high of $23.13 at 9:31am. It then came down to $22.80 at 9:39am before going for another spike up to $23.59 (although that spike was short lived but on high volume in that minute of trading). A low of $22.88 was seen after the second spike before NTGR trended up again. Bottom line with this, I will never even consider going against my ANGO no short rule even if it isn't perfect.


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