Calmly Stay Focused
One of the things that Jeff Cooper said at
TradingMarkets2000 confirmed one of my observations. That is, certain stocks
tend to have a personality that you can understand from day to day. That
personality is consistent enough that you can use it to find good trading
setups.
One such case of conspicuous “personality” was in Thursday’s action
in BEA Systems
(
BEAS |
Quote |
Chart |
News |
PowerRating).
Going back to Wednesday’s action, BEAS tended to react reliably
to its 20-period moving average. You either had good resistance or good support
off it. On Thursday, an ascending triangle formed and then broke out with a
burst of heavy volume. This is a classic example of a basic setup doing what it
was supposed to do. The follow-through into the close was everything you could
have wanted.
So while it may be that the market is in a state of
hyper-unpredictability, you must calmly stay focused and react to what you see
in your very own charts. Setups like these occur even in the most difficult
markets. You must not allow them to slip through the cracks because of what some
“analyst” says.
See you tomorrow,