Mark sent the following about APPX:
I’m short appx. What are your thoughts on a sensible exit. Is it likely to continue down through the 200 dma and $40 mark? Its got that big gap back on 1/7. Would a limit around $39 make sense or do you think it will continue down?
It sounds like Mark has identified the key points on the chart. I think it’s likely that buyers will at least make an attempt at supporting the stock if/when it hits those levels. I can’t really say how Mark should exit the stock though. That kind of thing has to be part of your plan before you enter the trade. Some options:
- bail before it hits support
- just keep a trailing stop somewhere above and ride it as long as possible
- take partial profits and trail a stop on the remaining shares
