HPQ looks like an objective short here around 19.00 as it has made an very over-extending run, gapping today right into a solid resistance level marked by several previous gaps. Trades like this should be considered aggressive as my style (which most traders deem impossible) often consists of catching tops and bottoms. For example, my last trade on HPQ was a long entry just two trading sessions before the multi-year low put in on November 20th and that trade was closed out for a 16.7% gain one month later. Regardless of whether this is a temporary (or possible a longer-lasting top, as this could prove to be an exhaustion gap) in HPQ, I find shorting HPQ here to be objective as my potential loss (about 25 cents) is a fraction of the expected gains on this trade (about 85 cents to T1 and 1.50 to T2). At this time I am unsure of which target I favor as I need to see how both the broad market and HPQ trade over the next several trading sessions and I will update my preference, assuming the trade is not stopped out, as soon as I have one.
