Here’s Why We Liked It The Second Time
When a stock starts to show its true
colors, you’ll usually find that there’s more than one opportunity to
participate. As long as your edge can be defined, it doesn’t matter if you
missed the first trade or not. It’s what you do when you see the next trade with
edge appear while you’re watching the stock that really matters.
From the Nightly Daytraders
Report Omnicom (OMC)
is triggering a downside breakout
from an extended Slim
Jim pattern. The stock is off .28 at 54.20. This action also has the
stock breaking through a Donchian Channel on the 5-Minute chart. As the top of
the broken formation is greater than .35, a money stop on entry would be
If you missed the first trade, or maybe just
didn’t agree with the technical picture at the time, there was another
opportunity beginning to set up at lower levels. Our second alert was a
heads up on a potential trend continuation play.
has continued to demonstrate relative weakness. The stock has been
consolidating in a Slim
Jim pattern at lower levels since our post at 9:51. Short triggers out of
this formation are currently established below 53.47. OMC is down .82 at 53.67.
Not every trade works out, and that’s why we use
prudent money management with all of our trades. But, when a stock does start to
resume its trend, it’s usually a powerful signal to watch the stock for another
chance to enter in the direction of the established, larger trend.