Newcomer Workshop for Jan. 10
Volume will often
precede price, and when it does, it can be a tip off to something potentially
explosive. Combine it with a pattern, and you have a recipe to pull money out of
the market.
This morning, we had an alert come over our software that Wind River
Systems (WIND)
had large blocks of shares hitting the tape, and immediately we check the
chart and place an alert in the chat room.
We see that the stock is trading in a Slim Jim on the
five-minute chart and are proceeding to prepare an intraday setup alert for the
Insights From The War Room when the
stock quickly reverses and heads higher. This is what Kevin Haggerty has told me
is one of his favorite setups, the "Shake and Bake" Slim Jim.
This is the beauty of the traders’ chat room — the ability to
get viable information to our subscribers as quickly as possible. If we have
time, we will then also post it on the insights, but if not, the opportunity to
profit from the knowledge is there. Get into the habit of quickly checking the
charts to confirm price and volume, and the chances will be there every day.
Intraday setup
alerts are normally thought of as useful only for that day, but in a
number of instances, they can be helpful for the following day as well. Why?
Because a stock that is moving will normally continue to move for at least the
short term. On Friday, we profiled AirgatePCS (PCSA)
later on in the session.
13:35:53
Intraday Setup Alert
AirgatePCS (PCSA)
is trading in a Slim Jim near the intraday low. PCSA is currently down 3.68
to 43.30.
PCSA didn’t trigger out of the pattern
by the close, yet ended the day there and broke down on an expansion of range
out of a pullback from low on the daily.
When this takes place,
the potential for continuation is there. Stocks that end the day in Slim Jims
can also carry over the following day. Today we get the follow through, as PCSA
continues to the downside.
When you have the
patience to continue to track a stock, the extra work often will pay off. Get in
the habit of checking the chart of stocks that are mentioned, even if it is not
a setup that you can act on that day. You may just uncover a winner like this
one here.