Turn Off Your T.V.
Opportunities come when you least expect them.
Sometimes, those are the best ones.
To find them you have to focus on what you see with your own eyes, rather
than what the news media tells you should be seeing. They had two themes on
Monday morning, interest rates and the human genome thing. Both diverted your
attention from the real action.Â
Here’s one example. Before the market opened, our first TradersWire
Insight of the day before the market opened was the following:Â
09:14:23
Corning (GLW)
closed at the bottom of a flag. The flag is forming within a five week run-up,
so traders will not only be watching for a bounce off the bottom of the flag,
but also a breakout above the flag. A caveat is a failed breakout that
occurred five sessions ago that makes this flag less than picture perfect.
But, so far, price action has not broken below the flag and that’s a good
sign. GLW closed at 240.
We like this setup because GLW was starting the day at the bottom of its
range. In these kinds of situations you can often tell very early in the session
whether an idea will catch fire with traders. This one apparently did.
While GLW gapped four points at the open, there were
still opportunities on intraday pullbacks. At its highs of the day (as of the
time of this writing) GLW was up as many as 17 points.
There was news, yes. Corning had signed a deal to provide optical fiber for
Aerie Network’s planned 20,000-mile nationwide broadband network.
But so what? There was also that news from Celera
(
CRA |
Quote |
Chart |
News |
PowerRating)
that it had (along with the publicly funded Human Genome Project) successfully
mapped the entire human genome. At the time of this writing CRA is down 17.
So much for value of news.
See you tomorrow,
Eddie