Greed Is Evil
Today’s Insight
Nothing is worse than giving back profits and
realizing that the only reason for it was greed. When you own a stock that gaps
up a large percentage on news, what do you do? I can only tell you what I would
do. Much like when I’m in a trade that’s moving up, I like to sell a portion,
perhaps half, of my position, to lock in a gain.
Remember, a stock can gap down just as fast as it
gaps up. I don’t know about you, but stocks seem to gap much further when I own
them.
Today’s Morning Futures Play
Anyone catch that morning reversal in the
S&Ps this morning?
Today’s Watchlist:
(
CTIC |
Quote |
Chart |
News |
PowerRating),
(
EMLX |
Quote |
Chart |
News |
PowerRating),
(
AIRN |
Quote |
Chart |
News |
PowerRating),
(
COMS |
Quote |
Chart |
News |
PowerRating)
Cell Therapeutics
(
CTIC |
Quote |
Chart |
News |
PowerRating) closed outside of its trading range on Friday
on strong news-driven volume. On Monday, it’s currently showing an inside day,
but no one knows what may happen. Set your alerts near Friday’s high as we watch
for it to move above this level. The biotechs have been strong lately, and I’m
continually hearing about them in the media, which lets me know that traders
are watching them.
Ideally, on both the daily and intraday charts, we’ll see strong volume if
and when CTIC takes out Friday’s high. Remember not to make predictions and try
to get in early. Let price action be your guide.
Speaking of consolidations, Emulex
(
EMLX |
Quote |
Chart |
News |
PowerRating) has been doing a
bit of that as well. It gapped up on Friday and almost closed on resistance.
Monday morning it was in the news and gapped up again, resistance prevailed and
the stock simply bumped its head and headed lower. Nonetheless, we’ll still set
our alerts just under and just over resistance as we watch for a move outside of
this trading range. It wouldn’t hurt to watch for both long and short
opportunities. The price action of the last four months looks like it’s trying to
form a base after coming off its highs. Should it take out its recent highs, it
may try to fill the gap from April, offering rather nice upside potential.
Airspan Networks
(
AIRN |
Quote |
Chart |
News |
PowerRating) is a recent IPO. After opening at
roughly 50 on its first day of trading, the stock traded lower for several days
and entered a consolidation. It’s this consolidation pattern that brings AIRN to
my Watchlist. Set your alerts near 23 3/4 and 19 3/4 and watch for a move outside
of the range. Look for a volume backed move outside of the range. More
conservative traders may want to wait for a closing move and then look for
entries on the following day.
3Com
(
COMS |
Quote |
Chart |
News |
PowerRating) is testing resistance again on Monday. Watch
for a move above 19 to offer a potential low-level breakout opportunity. COMS
may be forming a small-cup over the near-term as well as a similar
bigger-picture pattern. Watch for resistance near 21 1/4 and 22.
Ciao,Â
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