Many bashers were out and about when Bill Ackman's press conference ripped Herbalife LTD. (NYSE:HLF). The stock collapsed into the conference then surged. Many trash talkers like CNBC took the opportunity to hit him hard. However, just one week after the monster short squeeze it looks like Ackman was correct on Herbalife. The stock made a new 52-week low on Tuesday.
That said, the stock did hit a key double-bottom support and may see a quick bounce off that level. This is a high-risk trade but Herbalife can easily bounce 5%-10% before it continues its downward spiral. Remember, swing trading is about finding your key level then making a quick, multi-day trade -- long or short.
You don't care where the stock will be in a month a year -- you simply want to capture the quick move. By doing this over and over again, you can beat every hedge fund out there in annual return.