See What Is
It is really easy to laugh at or bash someone when a stock setup they picked
goes the other way, but the truth is, no one is perfect and no one knows for
certain how a pattern will play out. All we do is speculate on the probable
direction and take our chances. What truly makes a trader is being flexible
enough to take advantage of whatever opportunity presents itself.
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CCMP at this juncture looks like a short setup. The flag after
the thrust higher is usually bullish, but at this low following the knife down,
the pattern is similar to a simple pullback from low. Most trend followers would
be conceptually correct in anticipating this possibility, as a retest of the low
would not be out of the question.
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10:10:35
 Cabot Microelectronics (CCMP)
is breaking out of a low level flag. CCMP is now up 3.68 to 55.00 and is
holding a 3-month
relative strength ranking of 28 from TradingMarkets.com.
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However, the indices have been hot, and after yesterday the
charts looked like at least the open would be higher. CCMP busts out of the top
of the flag pattern. Now, does the intelligent trader lament on the fact the
setup went the other way? In a word, NO!
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The stock Slim Jims and breaks out for more than 1 point.
It is OK as a trader to have an opinion, and you should.
However, don’t get so locked in to it that you are unable to take advantage of what
is instead of what you think.
Until tomorrow,
Duke