No Blind Faith
Sometimes, when people see all of the successful setups we profile every day
on an ongoing basis, I can tell from the e-mails I get that some will be tempted
to blindly follow the Insights From The War Room. Let
me unequivocally state that this is not the way to use the alerts and insights
profiled in TradersWire. You must
have a thorough understanding of risk and money management, as well as a trading
discipline and methodology that you adhere to. A good example of why this is so
is illustrated by a tale of two setups profiled this morning, one successful and
one not.
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11:04:10
Intraday Setup Alert
Openwave Systems (OPWV)
is beginning to pull back from its high on the five-minute chart. OPWV is
now up 2.89 to 22.19.
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OPWV manages to rally out of the pullback and has slowly ground
out a gain of around 1 1/2 points at the time this is being written.
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10:50:19
Intraday Setup Alert
Everest Real Estate Group (RE)
is pulling back from the intraday high. RE is currently up 3.46 to 69.56.
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RE, on the other hand, goes down six more bars (or 30 minutes)
on the five-minute chart. Pullbacks past seven bars, whatever the time frame,
are a signal that the trend could be over. Following this rule — RE never made a
new high out of the pullback within the first three to seven bars — would have
kept you out of a dog of a trade that has been languishing since the first new
high was made.
Therefore, evaluate the setups we profile, and make sure that
they fit into your style and method of trading. Don’t simply trade a security
because it is moving or being talked up as a hot stock for the moment. Use these
alerts to zero in on possible issues to pounce on, then evaluate them.
Sometimes, just keeping an eye on them for a day or two is the most prudent mode
of action, lying in wait for the right moment can often pay off handsomely.
Until tomorrow,
Duke
P.S. Thanks to all of you who e-mailed me requesting the
specifics on how I made Dave Landry’s Butt Chicken recipe. To save myself the time spent
answering several more e-mails, here it is:
–Take one whole chicken, wash and remove innards
–Rub liberally with olive oil
–Rub down with Lawry’s Seasoning Salt
–Cover with any mixture of grocery store mixture of Basil, Oregano, Garlic
and Rosemary
–Cut top off can of original Coors beer (hey I’m a Colorado boy, what’d
you expect?)
–Put about two tablespoons of same herbs on top of beer
–Stick chicken over top of open beer can
–Balance bottom of can and chicken on barbeque grill on low heat
for 1 1/2 – 2
hours, closing cover last 20 minutes or so
–Eyeball chicken to make sure thoroughly done
–Enjoy!! This is no joke, it is some of the best chicken you have ever
tasted. The secret is the seasoning salt.