How ‘Chat’ Can Open Your Eyes
I’m always in search of a good idea, and
that’s why I start with my nightly watch list, but quite often my initial
ideas are improved upon by the ‘insights’ that I receive each day from our
members in the TM chat room.
From my nightly list of Low
RS issues potentially setting up, Fannie Mae
(
FNM |
Quote |
Chart |
News |
PowerRating) was kind enough to
pay some lip service in this morning’s early trade. The break down thru pattern
supports went out in the room.
Not that this particular one needed any help as
it got slapped on its fanny for a quick .60 thereabouts. But, as the trade
worked its way into a profitable alert, one of our chat room members, EJM6, gave
me a little heads up in a related issue, based on some potential fundamentals
that might affect the stock in the big picture. He was talking about Freddie
Mac
(
FRE |
Quote |
Chart |
News |
PowerRating), a very close cousin to our Fannie, and how the interest rate
picture could be viewed as a positive catalyst for the stock’s recent woes.
Never one to turn my back on a poorly acting
stock, especially when it’s showing some good levels from which to reverse off
of, I quickly did an about-face in my focus by paying attention to buy side
setups. About an hour later, an alert was put up in our LiveAlerts at 11:22.
11:22:49
Intraday
Setup Alert
From the Nightly Daytraders
Report Fannie Mae (FNM)
was ‘put out’ as a triangle
breakdown early on in the session, but has now traded down to critical daily
support levels. The retest of these lows is setting the stock up in a 1,2,3
pattern, for potential reversal longs. FNM is down 1.58 at 66.30.
I guess the lesson here is that sometimes it
really is ‘too easy’…that is, if you’re willing to ‘listen.’