WCG - WellCare Health Plans, Inc. is undergoing an FBI probe. The stock lost 62% of its value in a day. I don't usually play these dangerous news plays so I did not give it a second thought. Today I was going through some charts and I saw some good moves in the stocks of WCG's competitors.
Then the relationship hit me - WCG's fall = more profits for its competitors. AGP, MOH, AET, HUM and CI all had nice gains over 3% for the day. Now why didn't I think of that when the market opened yesterday.
- I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.