I'll give it a try...
the qnet space is rallying, and had it not been for this very reason INSP may have tanked...consolidation has taken place within the sector as Stan put the call on PPRO,,,,myself cmrc and vert a couple weeks ago.
there is no clear cut answer, so I'll go with the simplest explanantion. INTRADAY,,, I tend to watch price from the OPENING...if red forget it, especially after a major volume breakout,,,go green, I'm interested....then throw in those other things that screw it up, sector watch, leading indicators, are the big boys away, so the mice can play??? out for the holidays????!!!
look at covd....languishing in red (tho I could pose an agument to buy as it has nearly bridged the gap!)...going nowhere fast.
adct...explosive volume...gap up, then red from opening, and now in the green again...so when to buy????,,,on a print or two on the green side (whatever indicator used,,,minute, five,10 min bars....OR, go back to prior day's trading and look for support areas,,,, adct's case 40) have an exit, and if triggered SELL!!! even if it races forward 10 points!
all indications for a hold to play the gap were there for INSP....breakout volume with price, and the fact that insp made a prior move a week ago.
But, gap plays are not what they used to be, at least what I've observed, and this a result of overall volume a little lighter thru this period.
there's no clear cut answer, as headfakes galore...
In your case,going outside of intraday, maybe the best course of action is the adage to buy low, sell high, wait for a solid dip, and buy the weakness (support, moving averages..), and this requires patience (which i have little) and discipline. Then have the faith and conviction that your picks are solid from a fundamental standpoint and play the GENERAL mood of the market....maybe less shares with a wider stop, as my days of buying thousands of shares are over...
I do both.
if my math is correct, you still profited with 1 1/4 points, less commission...that's good, but we both know the gut wrench as the trade exited explodes past your exit!
another, you still can get back in the trade on weakness (as it continues it upward move!), and it will happen, forget about your last winning trade, and tackle the next as new...
at the point of your sale, it's interesting to note, that's exactly where I established some positions...I follow the ndx,,,,and first area I looked for was 3950 transition,,, we broke it,,,next down was 3920, the exact area you sold...it doesn't always work, but somehow, it's funny to see these points tend to have some type of action taking place as the market seems to have a memory.
Julie, this requires more dicussion, pages more than what I've posted...
edit. |
