A Classic Pattern Entry Into Momentum
When I feel weary about market action
after a significant run up, I don’t mind looking for the classic Cup and
Handle breakouts, but I find that I set my sights on a much smaller time frame. Yesterday,
Pixar
(
PIXR |
Quote |
Chart |
News |
PowerRating) triggered out of this pattern by way of the weekly chart.
It’s been a solid performer, up nearly 5% since the triggers, but during the
past session and a half, I’ve personally started to pull in the reigns. For me,
that might mean putting out some alerts that target resistance areas that
position holders should be aware of, such as an earlier post on the same stock
in today’s session.
12:11:00
Swing
Trade Alert
Pixar (PIXR)
has run up approximately 5% since our IT
Report trigger. The stock has approached angular resistance on the
daily chart in today’s trade, and considering the potential ‘topping’ action in
the ETFs, scaling out might be considered for position traders. PIXR is up 1.55
at 64.95.
…but when momentum exists, I don’t mind ‘playing the game’, as long as I
keep the playing time down to a minimum. When we get into a period where it
feels like the ducks are quacking I’ll focus more on a combination of the daily
and 5-Minute chart, rather than the weekly. The intention here is not a
long-term love affair, but rather an intraday opportunity to play with the
momentum du jour.
In today’s market that meant looking at
some of the foreign internet stocks that have been giving some people that warm,
fuzzy 1999 feeling all over again.
09:54:06
Intraday
Setup Alert
AsiaInfo Holdings (ASIA)
has formed a ‘relatively tight’ consolidation at 52-Week Highs. Continuation
triggers for breakouts
are above 9.50 with current trade changing hands at 9.39, up .16.
The same patterns exist, and the triggers are
still there to profit from, albeit usually on a smaller scale. In order to keep
those profits real, before momentum ends up turning into the greater fool theory
I just make sure that I know where I stand before I enter the foreign land of
‘mo mo mentum’ trading. Momentum trading might be a bit ‘foreign’ to this ol’
dog, but taking profits out of well-defined setups in any time frame is like a
nice welcome home party, any day of the week.