A New Twist On An Old Favorite
Anyone who reads this column on a
consistent basis is familiar with that long consolidation pattern called a Slim
Jim. One way to better exploit the edge in this pattern is to combine it
with other strategies that are indicating that the stock is demonstrating
relative strength.
One such way to do this is to keep a list of
stocks that have recently met the Taglia
Gap criteria. From this list you might find issues that triggered
entries based on the rules of entry using this methodology, or you might
come upon an issue that didn’t trigger, but is still showing superior technical
strength vs. the broader market as it consolidates its gains. Keep a close
eye on proper entry, because when a stock like this finds the broader market
“at its back,” solid entries are there; that is, if you did the work
ahead of time.
09:53:58
Intraday
Setup Alert
Zoran (ZRAN)
is consolidating slightly above an extended Slim
Jim. The stock was a Taglia
Gap candidate on Friday, and appears to be in a strong position to resume
its trend higher. The stock is trading up .35 at 17.
No doubt about it, ZRAN moved incredibly fast
through the trigger points, and your only chance of getting off stock within .15 of
the breakout point, was by being prepared. Don’t worry if you missed this one,
because if you continue your work, and look for trade setups like ZRAN,
maybe you’ll find one of these little gems in your portfolio before “Zey
Run” the next one straight up.