Stocks With Personality
I once heard Jeff Cooper say that he tends to follow
stocks whose personalities he can get to know and, ultimately, read. I do the
same. That probably explains why regular readers of my daily column will find
that I sometimes return to stocks I’ve discussed in the past. I simply see
setups as they evolve and I tend to spot them in certain stocks over and over
again.
The reverse is true too. There are certain stocks that I can’t figure out and
I don’t want waste with them even though the may be moving at a high velocity.
Here’s a slow burner that you might want to add to you list. It’s not moving,
but it speaks clearly.
Looking at Ambercombie and Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating) is like watching a
train moving along its tracks. It is bouncing around within an ascending
triangle. Slowly but surely inching its way to the apex. Major support was
successfully tested in late Sept. at its 50% retracement (off the May lows and
Sept. highs) and its 200-day moving average. That 7-point move looked pretty
tradable. Finally, you have the 20-day moving average giving you a rough kind of
short-term support zone that, when combined with a confluence of other support
factors, can give you a nice setup. You just have watch for that to happen.
In short…a stock with a nice personality.
Till tomorrow,
Eddie