Isolated Breakous
Retail and finance continued to act
constructively Tuesday while a number of stocks continued the base-building
process. We’re still far from the kind of proliferation of sound base breakouts
that would herald aggressive position taking. So if you’re trading for the
medium term, keep your bets small.
Loews
(
LTR |
Quote |
Chart |
News |
PowerRating), holding company of insurer CNA Financial, gained 3.9%, clearing a
nine-week base and marked a new high.
Laboratory Corp. of America
(
LH |
Quote |
Chart |
News |
PowerRating)
continued to build the right side of a cup-shaped correction-recovery pattern.
All stocks are risky. On
any new trade, be sure to reduce your risk by limiting your position size and
setting a protective stop where you will sell your buy or cover your short to
cap your losses in case the market turns against you. Never trade without a
complete money management plan. For an introduction to position sizing and
stops, see my lesson, see my lesson,
Risky Business. For more information on money management,
check out the Money
Management area of TradingMarkets’ Stocks Education section.