Profitable Trading Examples

Now consider some particular gap trades that would have been highly profitable. In particular, which trades were the best trades in 2011? The single best 10-day trade after a down gap would have been to buy Clearwire Corporation (CLWR) after its August 8 down gap. Clearwire is an interesting company. It has a 4G mobile broadband network that extends across much of the United States and reaches about one-third of the U.S. population. Its service is branded CLEAR in most of its markets. CLWR went public with its March 2007 IPO at a price of $25. By the end of 2008, the price was hovering around $4. In September 2009, its price recovered to more than $9. For the next year CLWR traded in a $6–8 range. In October 2010, the price began a steady ....Figure 4.5