Yesterday I blogged about OPEN's weak price action (http://steadytrader.wpengine.com/short-opportunity-in-open-table-open/).
While there is support at the $103 mark, yesterday's sell-off left an ugly looking outside (engulfing candlestick) bar. I am putting this short in bucket 2, specifically with a time-frame of no more than 3 days as I am looking for some follow-through of yesterday's selloff. This trade is nothing for the bucket 3 longer-term hold type of investor. In fact what I am doing with this trade is test the strenght left in OPEN longs. Will they give up after a one-day selloff like yesterday or view it as a better buying point? Whether I get stopped-out or not doesn't matter so much. Either way I will have felt the tone of OPEN longs up and close.