How Volume & Price Make The Decision Easy
It’s become the type of
market where playing both sides can be rewarded handsomely, but you can’t
overstay your welcome. Failed breakouts have become a regular
occurrence during the past couple of weeks, as institutional money seemingly
falls in and out of love with different sectors and stocks on an intraday basis.
To play the short trade out of this type of setup carries with it, in my humble
opinion (imho)–a decent risk to reward ratio for the intraday trader because of
the current market conditions.
Just remember though–if it’s not going down, and
clues such as volume and key price reversals take place–it might be high
time to play the stock for the very reason it was on your list in the first
place.
AdvancePCS
(
ADVP |
Quote |
Chart |
News |
PowerRating) is one such stock
that fits the bill. ADVP was written about yesterday as it tried a breakout
attempt, and was then listed on my Nightly
Daytraders Report
as a potential long, since it closed right near the daily trigger levels. The
first bar in today’s trade made a new price high, before promptly
reversing–which has been more of ‘the norm’ than most breakout players care to
talk about.
In the members chat, I actually commented on ADVP
as a potential short after breaking back below its daily chart pivots…
…but, as they say, ‘ a picture is worth a
thousand words’–and ADVP became an entirely different story than some of its
recent breakout predecessors as it ‘spoke volumes‘ about which way it
really wanted to go later on in the session.
Chris Tyler