Here’s Why You Should Watch The Sector Action
As we know, the general
direction of the market influences individual stocks. Many traders
pay attention to S&P 500, Nasdaq Composite Index, and Dow Jones
Industrial Average. But, before opening a new position, don’t forget to
check the sector action.
10:13:19
(From TradersWire)
Merrill Lynch (MER)
is challenging the top of a trading range on its daily chart. Long MER if it
trades above 56.45. Target is near 58. Risk one point. MER is trading at 56.41,
up 0.44.
Needless to say, Merrill Lynch is a brokerage giant. It provides broker-dealer,
investment banking, and many other products on a global basis. Look at the chart
below. $XBD.X (Securities Broker Dealer Index) has broken out to a new
high. It means market participants are pouring their money into a company like
MER.
Shortly before 10:30 AM, the stock moved above 56.45 on strong volume.
Currently, MER is at 56.98, up 1.01. Don’t forget to adjust your stop to 56.80.
Have a nice afternoon session!
Feel free to mail me your questions.