This Is One Way To Use The 50% Retracement Level

Gaps signal changes in
trend and momentum.
If you were lucky enough to buy Legg Mason
(LM) at the open, you would be capturing a 3-point gain in 15 minutes. Needless
to say, buying at the opening bell is not so easy. You may not like it, but
waiting for a pullback is sometimes wiser.

11:14:52 (From Traders Wire)



Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Buy

LM

Buy at MKT

pullback

73.74

74.50

73.95

TK

I was wondering where might be a
good point to buy LM. After all, this pullback could be a beginning of a
downtrend. I noticed the stock started to move sideways just above the 50%
retracement level (from Friday’s low to today’s high). We bought the stock as
soon as it took out 73.90.

11:20:37

Follow up on LM

Sell half to lock in 30 cents. Move stop to breakeven.

T.Kamada

Feel free to mail me your questions.