[isatrader]

American International Group (AIG) was said to be displaying fine relative strength, and that pullbacks should have been bought towards the support in the 27.50-28.50 zone. The Trader Stop Loss was given as 25.39 and the Investor Stop Loss was given as 23.99

Trader stop - on the daily chart the last pivot low was 26.24, and the high of the previous consolidation before that one was 25.90. So the suggested stop loss was well below the pivot low, and had been placed right underneath the 200 day MA which was at 25.42 at the time. Again, it's unclear if this was a factor in the decision as going by the previous examples you'd have expected it to be placed under the pivot low and whole point as it was close by - so 25.99 and hence there logically must have been an additional factor considered in this one, which could have been the proximity of the 200 day MA, but also could have been something else which is unknown to us.

Investor stop - 23.99 was the recommended level, which was below the last notable swing low close to the 30 week MA on the weekly chart of 24.66. The 30 week MA was at 24.21 and so the 23.99 placement put it below the swing low, 30 week MA and the close by whole point.

ATR distance to stops - For AIG the ATR(200) was 1.193 at the time of the recommendation and so:

• 1.77% to 2.61% ATR - Trader stop range
  
• 2.94% to 3.78% ATR - Investor stop range
  

Other observations - AIG volume was around average; relative performance versus the S&P 500 was improving though and had just broken above the Mansfield zero line (RS 52 week MA); the 30 week MA was just starting to flatten after a steep decline, so this was an early breakout.