Love In An Elevator

  • May 18, 2001
  • Duke Heberlein

Insights From The War Room is a
fabulous tool for alerting and spotting potentially profitable setups for
traders of all time frames. However, I will keep posting examples of how a
simple java applet alert on the TradersWire can
allow you to sniff out a winner all on your own, with the price and volume data
our software uncovers.

STK 09:28 RIMM  opens more than
5% lower than yesterdays close

 

Research In Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating) opens up below yesterday’s close, in
tandem with the Nasdaq
(
COMPX |
Quote |
Chart |
News |
PowerRating). Then comes the reversal of the
open.

 

 

As this is taking place, RIMM generates a new alert over the
java applet:

STK 10:05 RIMM  goes positive
first time of the day

A quick glance at the stock’s daily chart shows that
yesterday’s action has traced out a narrow range day (or a type of doji, for
you candlestick mavens) which will often precede a change in direction.
However, that is offset when RIMM fills the gaps and trades above the open.

 

 

This gives aggressive traders a chance to get in with a tight initial
protective stop, and two additional pullbacks for the less aggressive to
capture profits.

 

 

If this price action holds up on the daily, it will set up
in a large-range outside day, a bullish signal for continuation.

Have a great weekend!

Duke

P.S. I’m not going to let you go away until I give you my
best Dave Landry/shameless plug impersonation:

Hey Duke,
 
 

Just wanted to tell you that I have been using and
benefiting (learning as well as profiting) from the suggestions and techniques
that you point out in the trading lessons and your daily column (including
the scans, nightly lists, etc).  Although I had been using War
Room/Traders Wire on a daily basis, I was not getting the full benefit
until you began more actively demonstrating and teaching.  Thanks-
keep it up!!

 

Carol R.

Carol, thank you, and I hope more of you share the same
sentiment.