Sufficient Edge
I personally do not make a
move in a stock without first consulting the daily chart. When
I see something interesting going on in this time frame, but it doesn’t yet
qualify as anything special when drilling the action down to the 5 or 30-minute
charts, I’ll most likely put up an alert to reflect this perspective. For
instance, in today’s trade….
10:53:28
Daily
Chart Setup
Countrywide Financial (CFC)
is trading near daily chart handle pivots of 78.10. The stock is a member of
TMs Intermediate
Report. CFC is up .18 at 77.70 as it consolidates intraday near these
breakout triggers.
I thought the action was interesting enough on
the daily, especially since the stock already qualified for a spot on my IT
report, and furthermore I happened to know that the stock had been mentioned in
IBD today, under their ‘stocks in the news’ section. Combined, these three
factors gave me a reason to write up an alert so that our subscribers could
decide for themselves if something interesting was developing.
As it turned out, over the course of the next
hour I saw something developing in the lower time frame that was confirming my
initial interest.
11:53:27
Intraday
Setup Update
Countrywide Financial (CFC)
is trading near daily chart handle pivots of 78.10 as it tests session highs of
78 in an ascending triangle
pattern. CFC is up .48 at 78.
With the pattern sufficiently
developed and knowing that other traders were watching, a trigger with edge was
there for the taking. It will be pointed out that volume at this time was only
average and this would probably keep a few players out of the breakout play.
But, unlike ‘Willy & Co.’, who have the luxury of pointing out the good,
bad, and ugly in the next day’s paper, as traders, when we see 3 out of 4
ingredients in the mix, the ‘flawed’ stock is probably still one that we can
‘bank’ on, for an intraday trade with edge.