Here’s One Way Of Dealing With A Suspect Breakout
It happens to be a very strong
environment for taking intermediate-term triggers right now–but
even in a conducive environment, it doesn’t mean that some triggers aren’t going
to be suspect. If a stock with solid fundamentals and technicals is triggering
in the opening hour, it can be difficult at times to truly discern if the
‘power’ or institutional volume is strong enough to warrant an entry.
My rule of thumb is to take the trigger if
everything else is in place, but tighten up my stop loss until further signs
emerge–either telling me that the trade is suspect and should be monitored even
more closely, or that it’s appropriate to loosen up the stop to a proper IT
percentage of 7 or 8%–as institutional money starts to fill in as price
proceeds higher.
In today’s trade one such candidate was
American Power Conversion (APCC).
10:27:26
Intraday Setup Alert
American Power Conversion (APCC),
from this week’s
Intermediate-Term Report has triggered .10 thru handle pivots of 25, as it
consolidates intraday–up .48 at 25.09 on light trade. Continuation longs thru
session and intraday consolidation highs are set above 25.12.
They tried to ‘turn it on’ today, but without real power behind the move,
APCC looks to be a good candidate to say goodnight to–at least for the time
being.