Know the stock. Know it’s peers.

Excellent example today as to why it’s important to stay on top of related peers when live news drops.

AirTrunk IPO delay news hit Bloomie at 3.06pm…the really switched on players knew (or quickly found out) that SKS was in line for the engineering work. Given the debacle with Firmus and carnage to MGH there was only one way this was going to go. SKS started dumping on volume pretty well instantly. It had another $1.36 move in it by close.

SXE, one of the obvious peers (and one that had been performing pretty well intraday on broker target increases), didn’t hit new lows until 3.13pm. It dumped over 50c.

What else? The larger the carnage the bigger the net. TEA got attention. More diversified but by that stage punters wanted blood. New lows there at 3.18pm. 50c more in that by close.

GNP next. Even less closely related but definitely in the basket. Breaks significant intraday support at 3.25pm. It dumped another 40c.

Moral of the story?

1. Know your stocks…they are your tools

2. Don’t give up on a live news trade idea because you think you’ve missed your ideal entry.

3. Speed is key.

Other traders are working through the same process….beat them.