Feb. 14 Workshop
Contrary to some
of the joking that is done on the site, following the trend does not
make you a moron. In fact, it will often put you out in front in the quest for
finding successful trades. Take a look at the earlier profile this morning of
Optimal Robotics (OPMR).
10:32:03
Intraday Setup Alert
Optimal Robotics (OPMR)
is falling out of a false rally off the low. OPMR is now down 1.84 to 21.34.
The stock took out the
prior low on Wednesday (see above chart) so it is on the watch list for a
continuation move. We get another move below yesterday’s low and the pullback
intraday.
The stock dropped like a
stone over the next few minutes, allowing traders to profit from the move of
almost 4 points. Do they all play out like this? Of course not, but when you are
ready and prepared, it’s funny how often you get lucky.
Â
One of the most
important things to keep in mind when analyzing news in relation to trading is
that the reaction to the news is what is important, more so than the news
itself. A good example comes from this morning’s pre-market postings in
TradersWire.
09:06:05
Stocks Wall Street is Watching
Applied Materials (AMAT),
up 0.16% at 44.78, released better-than-expected earnings after the bell
yesterday with a loss of 6 cents a share, compared to an anticipated 8 cents a
share.
Earnings news are always tricky plays, but remembering to play the reaction
is the key, rather than jumping to conclusions and guessing.
Â
Aggressive traders may want to get in when the stock trades
above the prior high and the market is showing early strength. However, even
more patient folk can grab some profit when AMAT moves out of an ascending
triangle/triple top for nearly a 2 point gain.
Remember to wait for the reaction to news, then make your move.
Don’t gamble on what may or may not happen.
It is always
a good idea to take a peek at the papers
and see what is being written about stocks in the news over the weekend. This
can sometimes help you get a jump on opportunities when they present themselves
later in the week. But you can rest assured knowing that we do, even if you
don’t.
10:36:51
Intraday Setup Alert
Actrade Financial (ACRT)
is breaking down from an intraday double bottom. The stock is being hit
following this weekend’s Barron’s article that revealed the
company is being charged by two former insurers that claim ACRT misled them.
ACRT is down 7.27 to 17.62.
The stock had gapped down 5 points
from its close on Friday, then tried to rally. When it failed out of the double
bottom for almost a 4-point loss, profitable trades were made on the short side.
Even if you don’t keep up
with events over the weekend, our team of analysts on the
TradersWire does. While news alone is often
not enough to make a trade, when the technicals back it up, it is time to
pounce.