Miss The First Entry? Try This…
The market quietly consolidated Friday’s gains today.Â
Overall, I would say the market is mildly positive. I’m seeing
more strength than weakness, but there is still plenty of reason for caution.Â
Breakouts are occurring on both sides of the market right now, and looking for
opportunities both long and short may be the best option.Â
Many times when a stock breaks
out, it will offer several opportunities to climb on board. Let’s look at a
breakout from today to see an example of a stock that offered some intraday
opportunities.
AMX Corp (AMXC)
had put in a somewhat odd-looking basing formation from the end of October until
today. Depending on how you viewed the chart, you may have seen a pivot point
near the top of the “handle†at $19.42, or at the high of the middle point of
the “W†at $19.87.
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AMXC offered 3 entry points in the 1st hour of trading today. The
first occurred soon after the open, when AMXC quickly ran up through the $19.42
pivot within the first 10 minutes of trading. Some traders may have missed this
entry due to the swiftness of the move, or passed on it for fear that it was
extended and might pull back. The high it reached on this initial run-up was
$19.85, just below the “W†pivot of $19.87. The move through there just after
10am provided the 2nd entry opportunity. That breakout only took the
stock to $20 before another tight consolidation occurred. The 3rd
opportunity happened just before 10:30 when it broke out from that
consolidation (a triangle formation).
If you miss your entry point on
a stock, don’t just cross the stock off. Watch the action. Many times you may
be offered more opportunities.
Sector Action
If it’s action you crave, look
no further than the SOX, which has shot up dramatically the last 3 weeks.Â
Another day or two of narrow-range action like today could set it up for a
volatility expansion move.
A lagging group that may be
worth keeping an eye on is the BTK
Best of luck with your trading,
Rob