The Three Day Rule – Hot Market Update Seth Setrakian
January 21 2015 – Seth Setrakian – Amidst earning season it is important to pay attention to stocks that are exceeding expectations and to stocks that are battling expectations. Be careful to not call a top in the market or to catch a falling knife. Using the “3 Day Rule” give stocks a chance to get tired and move in whatever direction it will go. Watch, observe, take action. If you short a stock such as Netflix – which is up $45.00 after hours – who are you to call a top right now, by the end of the second day or third day you will know. Don’t be a hero and the first to act – exert some patience.