Tracking The Action
Surge and plunge alerts are funny things, but the biggest reason we report on
them is because there is action taking place in the stock. How it reacts in
conjunction with the market trend will determine how, or if, you can take
advantage of the move.
(
OVER |
Quote |
Chart |
News |
PowerRating) is a good example from Wednesday.
09:37:06
Plunge Alert
Overture Systems (OVER)
has dropped 3 points since the open. OVER is trading at 27.36, down 3.06.
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The alert goes out just a few minutes into the trading day, but it is falling
so fast that it is not really actionable at that point. The best plan of attack
is to track it and see it the stock and the market overall continue to weaken,
then look for an entry from an intraday pattern.
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The first pullback produces a small winner, while the big fish
is hooked when OVER breaks down out of a two-hour long Slim Jim that does a head
fake out of the top of the pattern. The stock falls 5 points in a matter of
minutes.
Patience will pay off. Keep stocks on the radar when we give an
alert on them.
Until tomorrow,
Duke