Trading Markets

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Flipping Charts A Fruitful Endeavor?

As I was doing my research for this
column I combed through hundreds of charts looking potential candidates that
would meet my criteria for trading. My friend Dave Landry taught me that you can
learn plenty by just flipping through 500-600 charts a night. As you many of you
know trading isn’t always black and white. What I have found is that a swing
trade setup has the potential of becoming an intermediate term trade.

Channel Breakouts

As an
intermediate term trader, patience is required for stocks to set up. Ideally we
would like to see specific patterns such as Cups with Handles or nice multi week
basing patterns, but as a trader I also look other patterns that could produce
trading opportunities, such as double bottoms and channel breakouts.

Protecting Profits

While I remain bullish on the high RS
breakout stocks, as I’ve suggested earlier, the market is definitely making me
edgy enough to want to take profits. Even within ongoing intermediate-term
rallies, you can encounter pullbacks that evaporate paper profits.

Why Oracle Wasn’t Enough

Stocks opened higher Tuesday on
positive news from Oracle but steadily gave ground throughout the session.

Following Through

As intermediate-term momentum traders,
we prefer to see our new buys break out on strong volume. As I’ve pointed out
many times in the commentary, that’s the best possible scenario.

Why Biotechs Bucked Downtrend

Stocks suffered another one-two punch
Friday as two networking giants issued warnings, accompanying negative news and
speculation surrounding key Dow stocks.