Beating ‘Em To The Punch
Sometimes trading is not complicated, or rather, we often will make it more
complicated than it needs to be. I am often amazed at how the seemingly simplest
of tools will forecast what the most technologically advanced indicators miss.
6-18-2001
15:05:49
 Americredit Financial (ACF)
is bouncing off a 38.2% retracement and the 50-day moving average. ACF is now
up 0.68 at 48.04 and holds a 3-month
relative strength rating of 83 with an uptrending ADX of 38 from
TradingMarkets.com.
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When we profile a setup like this, or you spot it on your own,
normally the idea is to look for a continuation entry and either play the
intraday chart if you are a daytrader, or look for continuation in the form of a
two to seven day trend. Sometimes, however the move can turn out to be very
powerful.
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Traders in this position should have been scaling out on the way
up, but you would still be alive in your last piece of the position. While not
every time a MA and a retracement are hit by a stock do you see moves like this,
luck is when observation meets opportunity. This is no truer anywhere than
trading. In the Insights From The War Room we
are constantly monitoring stocks for these levels, looking for opportunity
before everyone else is piling on. This example was spotted June 18 — CNBC
finally profiled ACF yesterday. After the 28% move to the upside.
If you are a trader, who is going to benefit you more?
Until tomorrow,
Duke