Plain Vanilla Trade
Famous golf instructor Harvey Penick had a great saying when one of his
students would attempt to perform a movement in their golf swing they were not
capable of. He would tell them, “think of what flavor you want your swing
to be. You want it to be consistent, so your game will be. Try to be just plain
vanilla, it may not be fancy, but plain vanilla gets the job done.” Now I’m
sure that Harvey did not play the market, as he described himself as simply a
caddie that never grew up. However, Harvey’s wisdom can apply to our endeavor in
much the same way. Many traders get caught up in high tech indicators and
oscillators, trying to predict and time the next move. Everyone in the media
wants to ask the same question of every guest: “Are we at the
bottom?” Am I the only one who is tired of hearing every anchor on CNBC
utter this?
The beauty of this game is, as my friend Dave Landry often likes to say, is
that is not rocket science. Sometimes things just set up and then perform out of
the pattern like they should. The old bromide, “It’s a market of stocks, not
a stock market,” often rings true. While everyone is looking for a bounce,
on the TradersWire we are still
looking for setups with the best chance of follow through. Many of those continue to be
following Dave’s
big blue arrow. We profiled Aviron
(
AVIR |
Quote |
Chart |
News |
PowerRating) back on Tuesday:
14:53:30
 Aviron (AVIR)
is pulling back from its recent low. AVIR is down 1 to 34 9/16 and is
carrying 3-month
relative strength ranking of 6 from TradingMarkets.com
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The stock has traded more than 5 points from the entry point,
and swing traders have managed to catch a good move to the downside out of this
simple “plain vanilla” pullback pattern.
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Until tomorrow,
Duke