Michael, indeed you are right, that is why i tried to qualify my statement by saying that it is a great trade as far as risk/reward is concerned. You enter the trade knowing your stop is a couple points below where we are which would be a violation of its technical support and on the upside you have a lot of room to run. I will take this trade any day of the year. One last thing, as a trader you can nearly ALWAYS count on a decent technical bounce at resistance levels, that bounce is what i make a very good living on.
To be honest, i rarely look at fundamentals, as long as the stock you are considering for a trade is at its psychological threshold (support or resistance) you will nearly always (9 out of 10) see enough action to take a trade. I stay with most trades from 1 to 15 days, depending on the sectors disposition (bearish or bullish) I have rotated from the Semis in December to Oil Service in Feb again in March and now i ma re-loading on the double bottom Semis, NEVER, NEVER marry a stock, that is what the fundamentalists do they get in bed with every stock they own and can't hear the noise of the technicals which may be telling them the real story! FA may tell you what to buy but TA tells you when to buy, kind of like driving from LA to NYC without a roadmap, TA is the road map!
Would you rather buy when the map looks like this securitytrader.com
or when it looks like this securitytrader.com
I think the point is obvious!
PP |
