Before You Enter A Position, Do This

  • July 18, 2005
  • Rob Hanna

The
market finally looks like it is beginning to pull back.  So far so
good as volume was light today and the selloff was mellow.  Nothing has changed
since Wednesday’s column, so I don’t have much to say today.  This pullback
should provide some opportunity to enter some positions.  As I stated last week,
of special interest will be stocks that are experiencing their 1st
pullback after breaking out.

 

I mentioned semis last week as
an area that was strong but extended and could provide some nice opportunities
when the group pulls back.  I would also add biotechs to the list.  Semis and
biotechs have shown great relative strength and could provide the most explosive
setups once they pull back a little.  Patience is key, though.  You must have a
setup that meets your criteria before entering a position.  Just make sure you
ready and pounce when the trade triggers.

 

Sorry I was so brief today. 
I’ll be back Wednesday with what I hope to be some interesting results of a
study I’m conducting.

 

Good trading,

Rob



robhanna@comcast.net

 

P.S.

Click here for the Hanna ETF Money Flow System.

 

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