Owner: Bullish Jim's Trading Blog URL:http://www.stockbuddytrades.blogspot.com Join Date: Fri, 23 Feb 2007 19:42:37 -0600 Rating:0 Site Description: Chronicles of a stock market dabbler. Blog covers my newbie attempts at short term and day trading and contains my general stock market insights. Site statistics:Click here
May Day Unfocused Stuff 2007-05-01 12:54:00 Reuters is introducing a trading algorithm software that scans news stories and makes trades based on the inclusion of words such as "excellent" or "disappointing" in stories. Makes me want to get a job writing press releases so I could write things like: "The company's lack of cash suggests an excellent chance they'll go out of business" or "astronomical sales of the new product has been disappointing for competitors". Kevin has decided to stop blogging and he will definitely be missed. His chart analysis is always insightful and I learned a ton from his site. All the best, Kevin.Jeremy Grantham thinks just about every class of investment in the whole world is in bubble territory. "By his calculations, the only assets likely to beat inflation by any significant margin if you hold them for the next seven years are managed timber, 'high-quality' U.S. stocks, and bonds." He's obviously smarter than I am, but that idea seems silly to me. So, investments in Chinese and Indian stocks- Read more:Unfocused
Cinco de Mayo Blog Links! 2007-05-05 14:59:00 I've never done a post exclusively devoted to links to other blogs, but I'm willing to give it a try:What's the first blog I read every day? Without fail, it's Filtering Wall Street. You want to learn a thing or two about trading, you need to be reading Marlyn every day.Speaking of Marlyn, he and I are both members of the cult of Stockfetcher. The cult appears to have lured a couple of new members in Dogwood and Woodshedder recently. For the record, I acknowledge that the Fetcher has its flaws. It is, however, a great resource for the novice screener and backtester. I find it to be many times more user friendly than any such site I've tried. I'm a simpleton, what can I say? I want to trade stocks not earn a masters degree in computer programming.Dogwood, by the way, is a bit of a Renaissance man. Here are some of his awesome Spring photos of, among other things, Dogwood blooms!Nobody is better than options guru (and fellow Mets fan!) Adam when it comes to calling out Cramer for p
Can I get a tiny little pullback, please? 2007-05-05 01:49:00 When the market rallies like it has lately, you end up with about a gazillion charts out there that look like screaming buys from a momentum perspective. Yet we all know that a good chunk of these charts are, in actuality, lying to us. A bottom feeder like me hates chasing stocks that are flying and would much rather buy a beaten up stock that has bounced. Unfortunately, in a broad rally like this one, I have to assume that the stocks that are beaten up really deserve to be beaten up.Trust me, I'm not complaining about making money. I just wish I could find a quality stock or two that are bargains at the moment. I guess I will spend a good chunk of the weekend searching for such a mythical creature. It'll keep me out of trouble, if nothing else.I sold a couple of stocks today simply because I had small gains in them that I wanted to protect and because they are scheduled to report earnings on Monday. I cashed out of CCOI at $25.75 for a 2.1% gain in less than 2 weeks (annualized retu Read more:little
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Wheelin' and Dealin' 2007-05-04 02:31:00 Made some more trades today. My frame of mind at the moment is to exit things that aren't working as quickly as possible and get into fresh setups. It sounds good in theory, but I am horribly inconsistent about applying that approach thus far.The details:You may recall that I sold UNT yesterday pre-earnings. It gapped down this morning at the open and found a bottom pretty quickly. I bought it back off the 12:15 BOB and decided to hold it over night.I finally dumped ANF today at $80.72 after watching it drift south for a week or so. I bought that one on 3/13 and ended up with a gain of 7.4% (annualized return of 53%). If I'd had the discipline to sell four days ago when the chart first turned ugly I would have had a double digit gain. Foolish of me...At COB Wednesday I added WU from my experimental "BOB + Confirmation" screen. I also like this chart because it has been channeling between $20.75 and $23+ for about six months now and has once again bounced off the bottom of that range.
Portfolio Update as of 5/7/07 2007-05-08 13:16:00 As I mentioned on May 1st, I will now track both my core and swing trading holdings on this blog. I had always intended to move all my cash to this account and I decided to go ahead and do it as of May 1st because I was sick of the extra bookkeeping required to track the portfolios separately.Below is my portfolio as of the close of business on 5/7/07. The word "Core" to describe a holding simply means I added it to this account as of 5/1/07. For the purposes of calculating returns going forward all of these core holdings were added at their current prices as if I bought them on May 1st.Had I merged my two accounts as of 1/1/07, my returns year to date would be substantially better as my core holdings have outperformed my swing holdings. Please note that there are several core holdings (GOOG, USB, HOC, COP) with sizable gains that I will likely hold a while longer purely for tax reasons. For those stocks I would need an extremely compelling reason to sell them and pay the less-than-one Read more:Portfolio
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What does this chart need? 2007-05-08 04:31:00 If you answered "another huge gap down", you win. CUTR reported earnings after the close and plummeted a mere 24.6% in after hours trading. Ouch. Frankly, I'm a little surprised I don't own it.It was an uneventful trading day for me. AKAM was weak all day long so I dumped it. CWTR was weak yet again so I dumped it as well. I looked at about a thousand charts trying to find a stock to buy and found none that I liked. That being the case I finished the day with 22% cash.And that was my day in a nutshell.
Amazing Shrinking P/E Ratio Revisited 2007-05-06 21:36:00 Way back on February 24th- just days before the market blew up temporarily- I wrote about a fundamental screen that I find fascinating. This particular screen finds companies that are growing revenues and earnings impressively (more than 40% and 60%, respectively) and yet for some reason the P/E ratio at which the market values them has done nothing but shrink over the past year.As of February 24th I believed that Google was the star of this screen and I even went so far as to say that GOOG's inclusion in this screen "underscores my basic belief that GOOG is a buy here". How wise am I? Well, since then Google's stock price has risen from a lowly $470.62 all the way up to an impressive $471.12. That is a 0.11% return in just 69 days, or an annualized return of 0.56%. Assuming you bought $10,000 worth of GOOG on 2/24/07 and sold on 5/4/07 and have a brokerage account with $5 trades, you would have netted a robust 62 cents for your troubles. You're welcome.Anyway, I thought it might be Read more:Amazing
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The Bulls are Relentless 2007-05-09 22:04:00 Apparently the NAZ dropping 15 points or so in the morning is the current definition of a buyable pullback. Whereas I firmly believe that a few down days would be healthy for the overall market right about now, I am not about to sit on the sidelines waiting for that to occur. Too much money can be lost while waiting for the bulls to run out of steam.I put some cash to work and bought some stocks today. And, I even satisifed the bear sitting on my shoulder by buying some puts. I always say I want to be more direction neutral. That being the case, what better time to buy some puts than when the market feels a bit overextended?Early this morning I added CKFR to the portfolio. It crossed above its EMA 20 yesterday and was showing a little strength this morning when almost everything else was weak, so I pulled the trigger and bought it. It proceeded to rise 60 cents or so through the rest of the day. Here's the chart:Right at the end of the day I also added DBRN and RPM, both of wh
To Rule or not to Rule? 2007-05-13 14:33:00 Stock Bee has a very nice post on the dangers of rule-making in trading. (H/T to Marlyn for pointing it out first). Personally, I agree that a good chunk of the rules you see on blogs and in investing books are trite and not particularly actionable. The rules I am referring to are macro in nature. In fact, the short term trading rules I have posted to the right are mostly too general to be useful in practice. If I were to re-write those rules based on what I've learned over the past seven months, I think they'd be a lot different. I hope that means maybe I've learned a bit in that time.Even though most macro rules aren't all that useful, I do think every successful trader has tons of micro level rules he adheres to in practice. We might not think of them as rules but there are certain candlesticks you'd buy and certain sticks you'd never buy. There are certain things things you'll do and not do relative to earnings announcements. Heck, using Stockfetcher to find setups is ALL AB
Selling the Laggards 2007-05-11 22:31:00 A very nice day for me on Friday. Almost everything was up and my healthy helping of oil-related stocks were up huge on the day. I love beating the indices on a big up day.I used Friday's rally to sell some of my weaker positions. On Friday I mentioned that I finally set aside my stubborn belief that Google is undervalued and sold the stock. It felt so good to pull the trigger that I proceeded to do quite a bit more selling by the end of the day. I wanted to weed out the laggards and end the day with a good slug of cash in my account; I think I accomplished that nicely. Given that it was supposed to be a swing trade, selling CKFR was a no brainer. I bought the stock based on the May 8th crossover and got a nice pop the following day. Then it stalled, with its high of the day barely touching the declining MA 50 line for three consecutive days. If Friday hadn't been such a strong day in the market the weakness in CKFR might not have been so obvious. I managed a 0.6% gain (105% annualiz
Google CEO: "We're not Splitting" 2007-05-11 17:19:00 Oh yeah? Well, I'm not owning then.In a confirmation that they have no intention of maximizing shareholder value, Google
CEO Eric Schmidt confirmed this morning that they have no intention of splitting their shares. Without a split, I have long contended that the shares aren't going to be valued at anything close to an appropriate P/E ratio for a company with such fantastic top and bottom line growth.Now that I've owned GOOG for over a year, the tax rate on my gain is as low as it's going to get. That being the case, I decided to sell this morning at $465 and change. In my opinion, if Google has no interest in the retail investor owning their stock, then they have no interest in maximizing shareholder value. And, if they have no interest in maximizing shareholder value, then I no longer have any interest in tying up my money in their stock for one more second. So there. Read more:Splitting
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Sold more than I bought once again... 2007-05-17 02:07:00 I got a nice earnings pop in Sony (SNE) today so I decided to sell. I fiddled away one gap up in this stock already on 5/9 and vowed not to do that again. Plus, I HATE how the stock trades in general with every day being a gap up or gap down. It's aggravating.I bought SNE on 5/2 for $53.69 and sold today for $55.95 for a gain of 4.2% (110% annualized).I also finally mustered up the strength to sell VAR today for an 8.4% loss. It looks ready to bounce to me so I'll keep an eye on it. Of course it looked ready to bounce to me as it fell a buck and a half over the past week.Because I felt like I should buy something, I purchased a half position in PSSI at the end of the day for $19.32. It looks like it might be bouncing after a slow, month-long descent. We shall see. Today's dealing leaves me with 27% cash.Disclaimer: This is not investment advice. It is merely what one know-nothing is irresponsibly doing with his own money.
Unfocused Shenanigans 2007-05-16 13:57:00 Cerberus Capital to buy 80% stake in Chrysler for $7.4 Billion. That's what the headline says anyway. The fine print tells you, however, that Daimler is basically giving Chrysler away, with most of the purchase price actually going directly toward improving Chrysler's balance sheet. The actual net cash coming to Daimler in the deal? Negative $650 million. I also can't help but raise one crooked eyebrow when I read that UAW supports the deal and that Cerberus will take on Chrysler's pension obligations. Let's keep an eye on how well that works out for the Union. I'll bet you dollars to doughnuts we start hearing about management needing concessions from the UAW within months.A couple weeks ago I took exception to Jeremy Grantham's contention that very few sectors will outperform inflation over the next seven years. I'm happy to note that another Jeremy- Dr. Jeremy Siegel- also disagrees with Grantham's assessment that there is a worldwide bubble in almost every class of investm Read more:Unfocused
A small profit and a boring buy... 2007-05-15 22:33:00 Be there no mistake about it, Coca Cola Enterprises (CCE) is not a sexy stock. This, however, is potentially a very sexy chart for a swing trade: This chart shows precisely the setup that I've been trying to find in IBD 100 stocks. It shows a nicely defined uptrend, a pullback to a major moving average, and a bounce off that average. Add in a nice BOB completed on Monday and a confirmation up day on Tuesday and you've got a potentially nice situation. Our Japanese friends call this a bullish harami and I bought a bunch of it late in the day today. I look forward to seeing how this one plays out.My only sale of the day was to cash out a small profit
in CNC. I was watching it closely this morning because I didn't like how it kept bouncing its head off its 50 day average the past several days. It popped a little this morning and I dumped it at $22.20 for a 2.6% gain (73% annualized). As luck would have it, it slumped the rest of the day and closed within 2 cents of what I paid for it. Read more:boring
30 second Monday Wrap 2007-05-15 03:36:00 I didn't feel an overwhelming urge to buy stocks today despite the market being down much of the day. I just didn't like the charts of the stocks coming out of my favorite screeners for some reason. I guess there are worse things than ending the day with 25% cash. Frankly, I should have ended with even more cash and bailed on flailing VAR but I decided, like Wilson Phillips, to hold on for one more day.Here's my short list of trades on the day:Stopped out of OII at $48.66 for a 7.8% gain (annualized return of 136%). I had tightened my stop a bunch and the stock got really weak early in the day and kicked me out. I also bought it later on for a day trade and made a few more beers on it.BGG has been good to me so I couldn't resist buying more with it down 2% on the day. I promise not to be a pig on this one but I think it's a good bet to go a little higher.My one new buy of the day was TRA which crossed its EMA 20 on Friday. It remained fairly strong today despite rampant squishines Read more:Monday
A few new buys on Thursday 2007-05-18 13:14:00 I added RYL and HBI on crossovers at the end of the day on Thursday
. The RYL chart looks very strong to me:On the other hand, I will now be watching HBI closely because, although it crossed over its EMA 90, it closed the day right on its EMA 20. The 12 cents it dropped in the last 7 minutes of the day definitely made the chart look a little less strong to me. The lesson here is to buy at 3:58 and not 3:53, I suppose.I also added AVCT at the end of the day. It popped out of Marlyn's new "4 week low ATR (10) and RSI (2)" filter. (Do you have a catchy name for this one yet, Marlyn?) The chart is a little distressed but it's supposed to be. I'll use a breach of its MA 50 as a clue that it will continue to fall. Should be interesting.Disclaimer: This is not investment advice. It is merely what one irresponsible know nothing is doing with his own hard earned money. Do your own homework.
How NOT to Swing Trade: A Post-Mortem 2007-05-17 13:32:00 The 8.4% I lost on my VAR when I sold on Wednesday is hardly the end of the world; I've lost more than that on dozens of trades over the years, unfortunately. That said, my overall returns are being hurt by trades exactly like this one way too often for my taste. In the interest of ending such mistakes, I'll take a few minutes here to dissect this bad trade.Forgive the low budget graphic below. My annotating skills are non-existent at this point. Anyway, you'll see below where I bought the stock, where I should have sold, and where I actually sold. The first swing trading mistake I made was giving a crap about the stock I was buying. I actually think Varian is a very interesting company and that bias definitely clouded my judgement on this trade. That's a mistake.I'm not going to nitpick myself on the original entry at $46.40. The 4/13 gap down found a bottom quickly and I waited for the bounce before buying. No problem there. I also can forgive myself for watching it move sideway Read more:Trade
Monday Re-cap 2007-05-21 19:59:00 I forgot to mention a couple of trades I made on Friday. I sold HBI for a tiny loss because it looked like the EMA 20 was going to provide some resistance. Today's action confirmed that suspicion. I also bought REGN on a BOB:I like this chart for a couple reasons aside from it being a picturesque BOB. I also like that the second day of the BOB basically bounced off the EMA 90. I like that the third day of the BOB bottomed at the MA 50. And, lastly, I like that it found support at $24, a place it bottomed back in mid April. In short, I dig this chart. Jimmy like.As for today, I somehow had the good fortune of having all but one stock gain on the day. USB was the exception and I rewarded its range-boundedness by selling it. That'll teach it.My one buy of the day was to re-enter DSX off a BOB. The last time I bought DSX was also off a BOB on April 2. I sold it a month later for a 7.2% gain. The chart shows that I sold too soon. Hopefully, it'll bounce nicely off its EMA 20 y Read more:Monday
Weekend Links! 2007-05-20 21:12:00 Kevin's back and blogging about the Dow's second week of the month strength. Welcome back, Kevin.Curtis Faith makes a good point regarding new traders having a tendency to overgeneralize. I think this point dovetails nicely with the topic of rule-making. On an unrelated note I also believe that over generalization is what partisan politics is all about. It's easier to take the same side of every issue that the party you more closely identify with is taking than it is to objectively assess the pros and cons of every complex matter. I'll make that the first topic of the political blog that I have no intention of ever writing.Dr. Jeff has a dash of insight on how difficult it is to time the market for small gains. Personally, I've been trying to stop wasting time guessing whether the overall market is topping or bottoming. Although I still love to buy at the tail end of down days, I'm mainly focusing on buying individual charts I like and trying not to fuss about where I think the N Read more:Weekend
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Amgen: Where's it headed? 2007-05-19 08:27:00 Question: What is the Amgen chart telling you right now?A) It's a buyable dip. You should "back up the truck".B) It has resumed a longer term downtrend and should be avoided.C) It's testing long term support at $52.50 and if it bounces, it could be an awesome buy here.D) Nobody knows yet.Answer: It's D) of course. Although, one could argue that it's all of the above. Or none of the above.As a swing trader I'm watching chart A) at the moment but not ready to pull the trigger quite yet. It might be a buyable dip but I personally want to see a little more strength before I buy. The action on May 15th might have been a short term bottom but that remains to be seen.With some strength in the coming days or weeks you could end up with the stock looking like a screaming buy in both the A) and C) timeframes. Or, if it breaks below the blue line in either the B) or C) charts, it might even be a very good short sale candidate.I basically see this stock as one that should be on every trader'
Glad to be holding some cash 2007-05-24 20:49:00 It was a day where I felt very fortunate to begin the day with 34% cash in my account. I still managed to lose a lot of money with the shellacking the NAZ endured, but at least I outperformed the indices. I had a bunch of stocks down 2% or more on the day, but my big cash balance and my Microsoft puts at least softened the blow quite a bit. That, my friends, is a hollow victory at best.As is my custom on big down days I felt compelled to buy some stocks at the end of the day. I bought GAP on a crossover:I bought AMGN because it wasn't as weak as everything else and because I am of the opinion that it has bottomed. That said, it's on a short leash and will either bounce pronto or it will be sold.Even though the chart is hideous I also added MGI at the end of the day. It showed up on Marlyn's 4 week low ATR (10) and RSI (2) filter. This is the second time I used this screen and made some nice coin the first time. I like that it bottomed at its 50 day MA once again and I'm wil Read more:holding
Sitting on 34% cash... 2007-05-24 06:47:00 I can't remember the last time I ended the day with this small a percentage invested. Once again I did more selling than buying and as a result I'm sitting on 34% cash as of the end of the day Wednesday. I have lots of potential buys identified but I feel like this recent run has made way too many charts look good. That being the case, I am going to be more selective and wait for a little more strength in any individual stock before buying. It just feels like caution is warranted for some reason.My one buy of the day was to add to my GROW position at $21.94. It was down on the day but still above its 200 day moving average so I figured I'd round it out to a full position.I took profits in CCE and TRA with each looking a bit toppy to me. I sold CCE at $22.90 for a 3.1% gain in 8 days (140% annualized) and I sold TRA for $19.15 for a 1.4% gain in 9 days (annualized return of 55%). Read more:Sitting
Trying to GROW my account 2007-05-23 08:23:00 I added GROW yesterday at $22.44. This will hopefully be a bit of a longer term hold as it looks like it may have a decent bounce coming. I'm buying it off a 35% drop in six weeks followed by a bounce off its 200 MA. I have to give a hat tip to Chris for writing about GROW on his blog and drawing my attention to this chart. Here's the chart: I also got a bit sell-happy on Tuesday, purging four stocks that either weren't going anywhere or were looking like they might be getting a little extended: Sold AVCT for $28.10 for a 2.1% in five days (annualized return of 157%). This was my first pick from Marlyn's four week low RSI (2) and ATR (10) filter. I'll use this one again.Sold WDR for a 2.1% gain in 19 days (annualized return of 40%).Sold WU for $21.82 for a 32 cent gain in 19 days (annualized return 29%). It didn't look like it was going anywhere so I cashed out my small gain.Sold RYL for $46.85 for a 4.5% gain in five days (annualized return of 330%). It already looks this mo
Hope is Not a Strategy 2007-05-27 09:56:00 My one transaction on Friday was to sell REGN on continued weakness. I had really liked the chart when I entered the stock on 5/18 but the last couple of days indicated to me that the plan was not working out and it was time to exit. I lost 7.7% on this one but it's looking to me like a stock that could have cost me a lot more than that if I'd given it any more rope.Like most bloggers I think I write too much about trades that go well. At this point, however, I feel like I'm pretty good at identifying good entries and I am improving at letting a winner run a bit more. Where I still need some work, however, is in exiting trades quickly that aren't working. I think my sale of REGN on Friday is a good example of the right way to cut a loss given my particular swing trading timeframe.Click on my low budget graphic for an explanation of the trade:When I bought the stock I made the point here that I liked that day 2 of the BOB had bottomed at the EMA 90 and that day 3 had bottomed at the Read more:Strategy
Testing the Candlesticks: Bullish Harami 2007-05-26 16:40:00 I've been spending more time lately studying candlestick patterns. What I plan to do here is to analyze one pattern at a time and see how it performs in Stockfetcher. I'll begin with the Bullish
Harami pattern.The Bullish Harami pattern is actually extremely similar to the approach I used with IBD 100 stocks several months ago. The pattern occurs when a stock in a well-defined uptrend pulls back to a major moving average and bounces. It still seems to me to be a solid and intuitive approach. My actual results when I used this approach were pretty mixed, however, because I was sloppy about sticking with my stop loss orders and because I wasn't as patient in waiting for bounces as I should have been. In short, if one isn't disciplined about sticking with a plan, then it is very hard (if not impossible) to draw conclusions as to whether the plan was a good one.I tried to draw an image of a Bullish Harami but failed miserably given my lack of skill. That being the case, I decided to bo Read more:Testing
Added TIE on a crossover... 2007-05-31 09:46:00 I just paid $35.18 for a 1/2 position in TIE. I like the chart, especially the crossover
of the EMA 90. I also like the rising moving average lines and a bounce near a previous support level. If it remains above the EMA 90 I may well round it up to a full position at the end of the day.Disclaimer: This is not investment advice. It is merely what one know nothing is irresponsibly doing with his own money. Do your own homework before investing in anything.
Gotta Love a Crossover 2007-05-30 21:16:00 I bought SY at the end of the day based on this pretty little crossover:It's a stock with a smallish ATR but I like this chart a lot. The last time I bought a low ATR stock on a crossover was CCE and that turned out to be a pretty good gain for me.From my so-called "core" holdings I sold STJ today. It looks to be taking a rest from a nice, long uptrend and it felt like a good time to book my 23% gain. I owned it nine months so it's a very nice, but not spectacular gain.I also sold GAP today at $32.93. The stock was wishy washy on a big up day so I dumped it. It had had three straight big up days and is approaching the $33 to $34 range where it has topped out a half dozen times since February. This may be a bit of over trading by me but I'll chalk it up as an experiment. Either way I can't complain about a 4.3% gain in five days (annualized return 317%). Here's the chart:I sold PSSI as well for a 4% loss today. I had bought that one on 5/16 when it looked to be bouncing after a mon Read more:Gotta
Filtering No More? 2007-05-30 13:05:00 I have been holding off mentioning that Marlyn has retired his Filtering
Wall Street blog simply because I had hoped he would change his mind. Well, after a week or so without posts, I guess I have to admit that my favorite blog is no more. Marlyn has rejoined the ranks of working stiffs like me and has stopped blogging due to time constraints. I hope he finds the time to blog again at some point in the future as he has a tremendous amount of knowledge to share and lots of readers like myself who appreciate his wisdom a great deal. There is only so much gushing that is appropriate when paying tribute to a no-nonsense guy like Marlyn ("No Booyah, No BS") Trades, but I would like to briefly and publicly express my gratitude to him. It has been my experience that you don't get very many mentors in life. People who express a genuine interest in what you're doing and who give you regular feedback- encouragement and critique- are rare and should be acknowledged. In short, I've learned a t
Dabbling with Options 2007-05-29 23:50:00 For years I've been sort of an aspiring (and somewhat ignorant) options trader. My modus operandi has generally been a bit of the- dare I say- Lenny Dykstra approach of buying deep-in-the-money calls, usually on oil stocks when the sector looks like it's bottoming. For instance, say I had COP as a core position that had been declining for a short time. When it looked to be bouncing I'd try to juice my return by adding a chunk of calls to my shares. Despite my ignorance and the crudity (pun intended given that I'm talking about oil stocks) of this approach, I've actually made quite a bit of money this way.Other than what I described above, the biggest hallmark of my options approach has been my hatred of paying any premium whatsoever. What I mean by this is that if the stock is trading at $25 and I'm buying calls with a strike of $20, I want to pay as close as humanly possible to $5 for the calls. If I can pay considerably less premium on $20 calls than on $22.50 calls, I've typi Read more:Options
Added ValueClick this morning 2007-05-29 12:12:00 I very much like this VCLK chart so I bought the stock this morning:Although I acknowledge that breakouts backtest beautifully in Stockfetcher, I still prefer to buy after the stock pulls back to a support level after the breakout. This VCLK chart is a good example of what I am talking about. You can see that it broke out big time on 5/21 on enormous volume. It then printed a short term top the next day and immediately started retreating in search of a support level. Not surprisingly, it appears that it found support at approximately the previous mid April resistance level I've drawn on the chart. This perceived support level provides the opportunity to place a fairly tight stop, which I have already entered. We'll see how it goes.Disclaimer: This is not investment advice. It is merely what one know nothing is irresponsibly doing with his own money. Do your own homework.
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