Here’s One Way To Use Relative Strength
Are you disappointed?
The S&P 500 Index ($SPX.X) formed a bearish bar last Friday
and closed near the day’s low. It appeared this weakness would continue in
Monday’s session, but the index is refusing to go down so far. Maybe a new $100
price target for Apple Computer (AAPL) is adding new fuel to the market.
10:27:11
(From TradersWire)
Aetna Inc (AET)
is consolidating just above the 8-day EMA. Long AET if it moves above 111.09.
Target is 112.60. Place a stop just below today’s low (109.86), or risk 0.75.
AET is trading at 110.68, up 0.08.
Although it looks extended and overbought, Aetna has been forming a narrow
trading range above a short-term moving average. As I mentioned, the market sold
off last Friday, but it did not affect the stock. It is a bullish signal. We
longed the stock shortly after 11:00 AM and took a partial profit about 30
minutes later.
11:38:07
Follow up on the 10:27 story (AET)
Take a partial profit and adjust your stop to breakeven. AET is at 111.71, up
1.11.
12:11:14
Follow up on AET (Pt. 2)
AET hit our breakeven stop. Sell the rest. AET is trading at 111.13, up 0.53.
Have a nice afternoon session!
If you have questions, feel free to mail them to me.