XM Satellite Radio, 30-minute Chart

Questions:

1) Why would you be paying attention to this stock on Tuesday, September 9?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock on Tuesday, September 9?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?

Answers:

1) Because it was unusually active, and very volatile.
2) Up. You'd be looking long.
3) Long at 15.56 on a buy stop above the 11:30 bar.
4) Tighter: 15.47. Looser: 15.26. (max. 1.92%)
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could sell half, carry half, or just close it all at once.

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