A New Attitude
All trading days are not
created equal. Depending on what the broader markets are doing should have a
direct influence on what trade types you’re considering that day. For
instance, with the technical testing that the market has gone through the past
two sessions, I was personally much more inclined to start giving more weight,
or consideration to breakout candidates, than I had been earlier in the week. In
the nightly report that I write up, that point was emphasized, as we know had
stocks that were both extended to the downside, and others that had been
courageously hanging in there during the latest pullback with the market’s
‘confirmed rally.’
Yesterday, New Century Financial
(
NCEN |
Quote |
Chart |
News |
PowerRating)
went on my personal radar as a news vendor stated that the stock was up on an
apparent ‘short squeeze.’ Well, they have their sources, but all I have are my
charts. Looking at the daily, NCEN presented tradable opportunity in my eyes as
I went through my stock selection process later that evening, and after the
close. The issue was forming a daily chart cup and handle pattern, which in the
right market environment, I love to look for appropriate triggers.
The next morning (today), the conditions looked
favorable as my view of the broader market was still intact as a hold of
technical supports was in the making. Coupled with the knowledge that there
might be some more fuel in NCEN, provided courtesy of ‘shorts’ in the stock, and
of course–the ol’ crowd favorite C & H pattern–the time seemed awfully right
to begin my search for some tradable edge….
10:04:56
Intraday Setup Alert
New Century Financial (NCEN),
is trading higher by .91 at 39.61 after breaking above daily chart congestion of
39.89, to fresh 52-week highs. The intraday action has the stock forming a
bull flag. Entries on recross of prior highs might be considered as a way to
play the stock long.
A ‘new’ day, a new attitude, and hopefully a few
more trades that keep on making ‘cents.’
Chris Tyler