ETSY

Hi Melrose,
We would not be a buyer here.  We are breakout, momentum traders; not bounce traders.  Now, that’s not to say we won’t buy something, to add to a position, bouncing off a moving average, but typically that moving average would be the 8 or the 21.  ESTY experienced a distribution (or selloff) day on Friday as it sold off with a pickup in volume.  It has lost both the 8ema and the 21ema and is making an effort toward the 50.  Could the trade work?  Sure, it could.  But, we like trades that stack the deck in our favor; we like the probabilities to be with us.  We want the whole world to see what we see. That’s why we like stocks with great earnings and/or great sales, in a good group, looking to make new highs.  When those elements are comprised together it leads to a high chance probability of success.
Hope that helps!
Owen