Thursday, July 27, 2006

CXP - Easy money

For those who like trade instead of investing take a look at CXP.

This company has good fundamentals and can be traded from the $5.65 to $5.85 range. This is a 3%-4% swing every few weeks.

The best way to trade it is to wait for the share to drop under $5.70 and then as soon as it breaks the previous day high buy it. This usually gets an entry point around $5.65 - $5.72. Then set an order to sell out around the top of the range at $5.85 to $5.90.

Its about as easy a textbook trading range as you will find in the market.

When this stock breaks the range I expect it to break up not down as the fundamentals are solid for the company but it is still priced slightly to high to be a great investment.

Good Luck.

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