Let’s step away from the China trade deal collapse (since it evidently had only a multi-hour effect on the market) and look at a specific idea: Beacon Roofing. The symbol is BECN, and they report earnings tomorrow after the close. I have shorted it with a stop-loss price at 38.95, which is 3.5% away.

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Looking at the bigger picture, it’s easier to see the rationale, I hope.

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