XOMA, 30-minute Chart

Questions:

1) Why would you be paying attention to this stock on Wednesday, September 10?
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 Wednesday, September 10?
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.
... (XOMA didn't trade on 9/9 while awaiting an FDA decision.)
2) Up. You'd be looking long.
3) Long at 9.97 on a buy stop above the 11:30 bar.
4) Tighter: 9.83. Looser: 9.74. (max. 2.30%)
5) Right after you enter the position or lunchtime, whichever comes first.
6) Stopped out on the 2:30 bar.

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