Stacked Against You?
Everybody loves to play the
textbook breakout on a
strong, technically and fundamentally sound
issue. It’s the mantra for more than a few traders out
there. There’s absolutely nothing wrong with this trading or investing
philosophy, just remember this before sitting down at the table: You had better
know whose house it is and the game that’s being played, otherwise you might be
forced to fold a good hand prematurely…
In the wee hours of the a.m. I found the daily
chart of OSG just begging for acknowledgement, so I put up an early post for
those that dare to care for this type of play.
09:15:08
Daily/Swing Chart Setup
I seriously forget which ‘IBD’ watchlist this
came from (New America or IBD Top 100), but Overseas Shipping (OSG)
is close to weekly triggers. The forementioned implies that the issue has a
strong blend of fundamentals and now the technicals look poised to complete the
picture. OSG has been working on a 9-week lateral, high-level base. With a
closing price of 26.40, triggers .10 above pattern and 52-week highs are set at
26.85.
That very ‘special’ man, the NYSE specialist, was
kind enough to open the stock below the daily triggers, but in the normal course
of making a ‘fair and orderly market’, you had to make a difficult trade
decision on your very own (imagine that, even with the decimals), how you could
jump on board something as cooperative as Overseas Shipping–before the boat
left the proverbial dock.