Look To First
First consolidations on an intraday basis are often good entry points for a
daytrader to catch momentum before the stock gets too far extended.
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10:10:21
Intraday Setup Alert
Apollo Group (APOL)
is trading in a pennant near its highs. APOL has a
TradingMarkets 3-month RS of 44, and is trading at 42.77, up 1.06.
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This allows a trader to get into an intraday position before the
stock gets too far up “the trading tree” as Kevin Haggerty likes to call it . He
likens it to a tree because a tree is stronger at the trunk, and gets weaker the
farther out into the branches you go. The first or second consolidation or
pullback can be likened to the trunk of the trading tree. This does not mean
that late day patterns are not valid, but often won’t have the same potency or
room to move on a breakout.
Until tomorrow,
Duke