How Do I Know When I’m Wrong?
Some days it’s just not meant to be, no
matter how much you prepare. This morning I came in thinking, ‘Oh baby, this
one is gonna be great.’ Doing my research last night, I picked out a few very
interesting candidates from which to start my day off in the right direction.
One of stocks on my list, Avid Technology
(
AVID |
Quote |
Chart |
News |
PowerRating) looked very good on
the daily chart. The price pattern was setting up, and the volume
characteristics looked great. All I had to do was wait for the market to open,
and then….
09:37:59
Early
Relative Strength
Avid Technology (AVID)
is trading up about .30 at 37.20. On the daily, this action has the stock
closing in on a two-day pivot zone between 37.35 – 37.70. A breakout
above this resistance area is suggestive of a Cup & Handle pattern on the
daily, with 52-Week highs established at 38.15.
….waiting for pattern, waiting, waiting, and then…
10:38:09
Intraday Update
Avid Technology (AVID)
has formed an intraday 1,2,3 bottom (3pt. 10:20 bar) for potential reversals. On
the daily, the stock is setting up in Cup & Handle pattern, after showing
strong volume characteristics on the bullish thrust and consolidation days. AVID
is down .35 at 36.56.
….and then, a great, big Homer Simpson style, ‘Dooohh!!’
An entry off of this reversal (which btw, was posted after the initial 3 point
entry) would have resulted in one of the statistics of doing consistent
business, day in and day out.
Believe it or not, I actually had an alert for a potential Opening Reversal
that never got posted, but that’s not to say I wasn’t ready. Nothing like
‘beating a dead horse”, but even worse is trying to jump on top, when he’s
obviously not going anywhere. Proper stop loss management was the key to getting
off this dead horse, and being free to look for a better vehicle for which to
travel the market on.