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Today we look at NLNK which has been a nice trading ticker for the past few days. Clay alerted the cliff point at the 17 dollar level. We take some time to discuss the phrase ‘dead cat’ and it’s implications on a bounce. In order to have a higher probability for a trade, we’d like to see a reversal candle (wolf candle) to form a short trade plan. This keeps our risk low and reward open. After setting up our entries, stop and target, we scroll the chart to find a relatively smooth downtrend to the tune of almost 2 dollars. We never go into these trades expecting a home run but they are certainly possible. We alerted NLNK probably too many times these past 3 trading days but it had tradeable action.