hi bart,MAXF
The pattern was there as I mentioned for two points...But as time goes on, I tend to throw out pretty good stocks for ones that I think are better stocks...In other words, I am trying for the biggest bang on a move..
1. Whenever oscillators show a bearish divergence with previous price highs, I get nervous and usually stand aside..However, as we have noted in cup and handle stocks like DROOY, you will get a false reading here, since the stock is just moving naturally in a sideways motion, near the highs, until the next breakout...
2. I like big volume breakouts, like over 1 million shares on gizzards..On these lower priced issues, I am always suspicious of a few people luring others into the break and selling into the break...And then I get caught holding the bag...
3. I have been in a mindset lately, that I like to buy before the break...Have been hunting for 1 million share days in the recent past, where stock doesn't move much and is near its price low...Figure this is accumulation, before some news item comes..Stock must have a decent pattern, low shares outstanding, and some good instititutional interest..Example...TELM has Fidelity behind it...I jump in and wait for the news...
Take care, good trading...I can't complain, If I can keep making 5K a week, I am happy....
Mark |
