One Day At A Time
You can only feed off euphoria for so long.
In fact, if you are a savvy trader, you don’t fall in love with the perfect
wave. You jump off at an opportune moment and wait for the next one.
Thursday’s showing in two charts discussed in
“Chart of the Day” illustrate
this principle perfectly. Temple Inland
(
TIN |
Quote |
Chart |
News |
PowerRating) added to Wednesday’s gains–giving us a total of
four points since yesterday’s lows. The wave is still carrying you. The
opportune moment to exit has not yet arrived.
Apria Healthcare
(
AHG |
Quote |
Chart |
News |
PowerRating), however, sputtered out big time with a four-point
loss. Your well placed stop would take you out so you could be ready to pounce
on the next wave.
Now–for tomorrow. Breakout strategies tend to work best in momentum driven
markets. Also, when you’re in a group that has leadership. Look at Southwest
Airlines
(
LUV |
Quote |
Chart |
News |
PowerRating).
Oh what a chart. Thursday saw LUV following through on a solid
bounce off its 20-day moving average and its 50% retracement (Dec lows – Dec.
highs). If the momentum in the airline group and the market as a whole stays
intense, you’ll want to be a ready for a breakout.
Until Friday,