Be A Follower…
Trading is not about predicting stocks’ behavior. Trading is about following
action for a probable outcome, acting on it, and getting out quickly when you
are wrong. Sometimes the initial move is not the correct side to be on.
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09:39:52
News and Intraday Setup Alert
Overture Services (OVER)
could be staging a potential news reversal. The stock gapped lower on the
open after news of America Online choosing Google as its search engine instead
of OVER. The stock has gained more than 1 point in the last nine minutes
following its downside gap. OVER is down 9.27 at 24.92.
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Often, stocks will reverse and fill their downside gap, as was the initial
feeling in the 9:39 A.M. alert. Since the stock had risen more than 1 point at the
time, the likelihood of it continuing seemed to be the way to go.
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However, nimble traders following the stock can jump aboard the
downside move as the stock breaks down from a slanted triple bottom.
It is good to have an idea of likely direction, just don’t get
locked into it. Learn to follow the market’s action, and you will soon be on the
right side of things.
Until tomorrow,
Duke