Hoppin’ On The Momentum Train
Momentum begets momentum, and on days like today, all of us in the War Room
are focusing on where the action is, so that the information we send out to our
members is full of “meat” that they can utilize to execute profitable trades. When
you know how to use the information that comes across the Insights From the War
Room, moves you find may turn out to be very good for your account
balance.
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10:40:34
The Good Old Days
Remember when tech stocks and nets especially would rocket some huge percentage
in just a matter of days? This is precisely what stocks in the Internet sector (GIN)
are doing. The push has been led by Amazon (AMZN),
which is sporting a two-day gain of 54% on recent word from CEO Bezos that the
world’s largest online retailer would turn a profit by year’s end and that it
had a 5% quarterly increase in sales revenue on improved electronics trade.
Traders should take note that only a very, very small percentage of stocks that
fall under $10 a share ever break back above that mark. Also from the GIN, Check
Point (CHKP)
is up 19% in two days and 34% over three days. A stock to watch from the GIN
that has some catching up to do is Verisign
(VRSN)
a Net security issue making progress out of a one-month base, up 5.40. to 39.00.
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The original post at 10:40 establishes something of value — it is becoming
apparent that buyers may be beginning to show up in Internet and Internet-related issues. So a quick eyeball of the intraday charts for pattern setups is
where to go next. About 20 minutes later, this alert goes out:
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10:59:52
Intraday Setup Alert
Check Point Software (CHKP)
is beginning to pull back from its intraday high. CHKP is now up 5.38 at
57.45.
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Buyers piling in to these stocks give us some more first-rate
setups.
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11:22:09
Intraday Setup Alert
Broadcom (BRCM)
is forming a Slim Jim just under its intraday high following a 4 point run
earlier in the session. BRCM is trading up 4.04 to 28.17.
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QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) was not profiled, but is a Net-related play
that they keep coming after, and a good example of what you can find when you
look at other stocks in the same group for patterns.
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On thrust days when momentum is paramount, use the TradersWire
find where the sharks are feeding, then stalk for the prime
setups.
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Random Musings….
Thanks to member Eric Craig of Trenton, NJ, for your kind
comments you have emailed to me over the past few days. I’m glad you look
forward to my column and that brings the number of regulars for my piece up to
three, only about 14,997 readers behind my buddy Landry.
The NHL hockey playoffs are starting in the next couple of days.
Go the TradingMarkets World and check out the new poll.
Good luck to all fans rooting for your favorite team. I will be backing my
beloved boyz from Colorado. Let’s win this one for Ray Bourque, guys.
Until tomorrow,
Duke