Mar 6, 2015
WX's Gap Down Screams, "REVERSAL!" Just Mind the Spread.
WX – Wuxi Pharmatech Cayman Inc. was another great reversal trade. This was found in my Gap Down strategy but it was a challenge to find a good entry because the spread between the bid and the ask was very wide at times. When the spread did settle down, I was able to find a decent entry and called it live at $34.76 in the Trading Room. I sold at various stages for profits of $0.54, $1.18 and $2.03 per share. Later on, I tried it again but took a loss of $0.17 per share.