Another big winner on the Cliff Jumper Strategy! My young lad Sam is a huge Transformers fan and his favourite transformer is Cliff Jumper so what better name to give to this particularly strategy. These trades can be spectacular especially when it’s a huge drop like this one.
Abercrombie and Fitch fell off a cliff today (see the big red sellers bar!!) following their latest profit announcement. Now to be totally honest I never thought the news would be received as badly as it was.The share price has dropped by 20% so far to 3718 ($37.18). Look at the red sell box on the left hand side of the chart, I sold Abercrombie and Fitch at 4,826 ($48.16) on 16th August 2013. You will see my Buy Stop in the green box was 5,028. I put in a 2 dollar stop (202 pips). This gave enough room for some short term price movement leading up to the profit announcement bearing in mind there will always be some movement in the share price leading up to the profits announcement.
Look closely again at my daily chart. You could have had another selling opportunity the day before with the small red bar. The day after was the cliff jump.
What a great result! The share price fell by over 10 dollars banked me 1065 pips on this trade. Entry point was on 16th August 2013 as shown on the horizontal blue bar so not bad in just a few trading days. So next week’s family holiday is paid for thanks to Abercrombie and Fitch! Happy days!!
Please, please, please always remember this is not a recommendation to buy or sell ANF but to be used for educational purposes only.