Saturday, October 10, 2009
Tim Sykes' GVBP trade, Sept 21, 2009
A successful short trade. The trade info on TimothySykes.com assigns the trade to September 21 with "buy" at $0.29, "sell" at $0.49. But he couldn't have sold at $0.49 on September 21 -- that's outside the day's range. Apparently he sold short on the previous day and covered at $0.29.
The watershed between bullish and bearish sentiment on GVBP is clearly seen in the chart: that's September 16th, the first day when a downward (red) candle is combined with a rise in the volume. After that, the bearish trend continues while volume goes down. This pattern is already well formed by the time Tim enters his short trade.