BWSI
Jay, first of all the 66% rule is most effective on stocks during the intraday move, that is day one...These are not pump and dumpers, but stocks with real fundamentals...As I mentioned previously, I like those that are making 52 week highs with no overhead..Furthermore, these stocks have to fit the other criteria I mentioned, in a prior post, with real time RS and stochastic..
So I entered BWSI on the pullback on day one at 5.75....That is our 66% pullback area....When momentum did not re-assert itself at open on day two, I sold at 7.06...Then re-bought later in day..
On day two, again you use the 66% rule AND 50% RULE....On many strong stocks the pullback will only be to 50% below the prior day high..That means 6.00 on a stock like BWSI...
I was watching to see if there would be a mean reversal in the 5.50-5.75 area, but none came(66% rule)..There was no strong volume of selling to downside, so I knew this baby had legs..Showed me it was a 50% stock, a strong stock...Re-entered at 6 3/8.....
Doubled up at 7 9/16, when most of volume was well north of 8 on Friday, and market maker was doing a head fake on low volume, taking it down to 7 3/8...He was trying to take out stops and did a nice job of it...Late in day the big buyer from earlier came back and we closed above 8.00... |
