Solid Setups ‘Broadcast’ Triggers Through Pattern & Volume
‘Siriusly’….if I see the pattern, and
other technical confirmations are supporting the decision, it’s time to trade.
‘They
say’ the ‘big boys’ upstairs don’t touch the ‘small guys’ under $5 a share. Or
was it $10, or was it $15? Honestly, I don’t care, and depending on who you ask,
you might get another reason not to trade it.
Sirius Satellite
(
SIRI |
Quote |
Chart |
News |
PowerRating) was looking
pretty darn good technically in Monday’s trade, if you could get past the ‘pooh-poohing’ of stocks not to consider. With another stock in the same arena XM
Satellite
(
XMSR |
Quote |
Chart |
News |
PowerRating) receiving press today as it moved higher, I went to
take a gander at similar companies in the subsector. The first one that popped
into my head was Siri.
As it turned out, the stock had formed a daily 123
prior to today’s trade off the 50 and 200-Day EMAs. But, it was in Monday’s
trade that it looked to be breaking above that original trigger at 1.69 for a
solid follow-thru entry. More importantly and interesting to me, was the volume
in today’s trade. Although the stock was trading below the 50-Day moving
average, the stock as it moved thru 1.69 was showing very healthy intraday
volume, which looked to put today’s volume in relation to the most recent couple
of weeks, above average.
With the trade well defined by technicals, and
the bonus of huge liquidity, I put it out in chat as it was trading 1.70.
‘Siriusly’, I had no idea ultimately what it
would do in today’s session, but I did have an idea of a trade with edge. So
far, with session highs of 1.85, and potentially .15 in pocket, those are some
nice outsized gains for such a small potato.