Strategy Description: This is a variation of the trend-trend trades where the news isn't yesterday or in the premarket; it occurs during the day.
BLUE is within a strong daily downtrend. It is somewhat of a consistent downtrend (rather than say a big flushing one, but I'm not sure if you would trade it much differently anyway). The previous recent low on the daily is $78.50 and the initial spike from the news takes it right down to that level.
Just like the breaking hit piece fraud reports look to short strength/pops (only) as it begins to peak out after the news. Looking for a rollover and a move to new lows. Ideally hit a lot more as it makes new lows and gets below that key level... But BLUE is somewhat illiquid.
And crack, textbook setup.
Again, notice the approximate time-frame. It took around 20 minutes of peaking out for it to rollover again, so no need to chase weakness and rush the trade right after the news. Waiting for the peakout allows you to avoid those squeeze backs when the news is garbage.
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