We dodged a bullet on Tuesday, pulling a 47.50 bid just before the bottom-dropped out — first in AMZN, then in this stock. CRSP’s intraday low could have been bought with a tight stop-loss, since it occurred close to the 46.54 midpoint support. I wasn’t at my desk when this happened, though, and I doubt that I would have advised a stop-loss wide enough to have survived the 19-cent overshoot. It was not sufficient for us to infer the stock is bound for 41.36, but a two-day close beneath p=46.54 would shorten the odds of a further fall to that number. In any event, we’ll move to the sidelines for the moment. If the stock gets near 41.36, that would be a back-up-the-truck opportunity to buy it as far as I’m concerned. _______ UPDATE (April 25, 8:24 p.m. EDT): A rally to the green line would set up the stock for a ‘mechanical’ short, but we’ll let it pass as we continue to look for a low-risk buying opportunity. ________ UPDATE (April 29, 5:08 p.m.): The stock has not merely rallied to the green line, it has attacked it. We’ll back away for now, but if CRSP pushes above c=51.72, we may have to give up on trying to buy it on-the-cheap._______ UPDATE (April 30, 1:42 .m.): Bid 44.07 for 200 shares, stop 43.57, good through Tuesday. Here’s the pattern we’re trying to leverage. (Note: The chart indicates a 44.03 bid, but you should use 44.07.) _______ UPDATE (May 1, 6:22 p.m.): Leave the bid in through Thursday. Today’s recovery lacked vigor, suggesting there’s still a chance we could buy stock with a stink bid (albeit a targeted one). _______ UPDATE (May 7, 5:28 p.m.): Cancel the bid for now. I’m pussyfooting because I expect many subscribers to do this trade. That makes me uncomfortable with the approximately $700 entry risk per round lot if a ‘mechanical’ signal (on the daily chart) is used to get long. My preference is to wait for a ‘camouflage’ opportunity that would cut that risk by as much 95%. However, I could use some help in the chat room with this, since I will not be able to monitor the markets minute-by-minute when I return to Houston next week for surgery on May 15.
