Sabre Tooth Rally
Kevin Haggerty told me this morning that the current market is one that
daytraders love and that position traders hate–unless they’re in
“decision” type stocks as opposed to “trading” stocks. By
this, Kevin was referring to less volatile, strongly trending stocks. These
stocks generally do not offer the same kind of one-day double-digit gains
that the stocks on Kevin’s hit list offer, but…for the position trader they
are an oasis.
I refer to stocks that are in strong uptrends that react well to conventional
support and resistance levels.
Tuesday’s
“Chart of the Day” highlighted
(
WCNX |
Quote |
Chart |
News |
PowerRating). Today’s rally swept WCNX up from
support at its 20-day moving average and its 61.8% retracement–for gain of 8%.
A chart I want to bring to your attention today is Sabre Hldgs
(
TSG |
Quote |
Chart |
News |
PowerRating).
From a swing trader’s standpoint it has the right stuff. It
is in a strong
uptrend with a three-month relative strength of 93. It’s bouncing off its 50%
retracement level (Dec. low – Dec. high) and the bottom of a well-defined trend
channel. The only disadvantage is that the ideal entry point occurred
near today’s open. Still–trading is waiting game. You find stocks that look
interesting, and you wait patiently for a low-risk/high-reward opportunity to
present itself.
Here’s one for the watchlist.
Until Thursday,