Post feedBreakouts
I have tried to encourage those who have access to partake in my daily audio commentary on the website. If you have not had access to it at this point, once the new website converts, everyone will be able to partake. The reason I bring this up is that I have been encouraging everyone to trade breakouts (especially on retail...KSS, SHLD,PLCE, AEOS, ANF, OMG, etc.) since this has been the most rewarding strategy the market has offered as of late.
For those who have not heard of this strategy, you place a trade when a stock happens to close outside a support/resistance level. In this scenario, we are looking for stocks breaking resistance and moving into new highs.
The requirement other than a close above resistance is a good level of volume. Typically on breakouts you would look for better than average volume. The more volume the merrier. These are the only two requirements. In attempt to hedge the question: Yes, this means we are not using a MACD, Stochastic, or Moving Average for these. They have no relevance in this trade.
Let's throw a few more stocks out there. As of early there are a few stocks that might close at new highs today...
COH
RIMM
GS
SHLD
FTEK
Obviously I missed a few since I only spent 5 minutes looking. Make a few contributions to this list if you have them. This will be today's fishing hole for those who can't find anything going on.
For those who have not heard of this strategy, you place a trade when a stock happens to close outside a support/resistance level. In this scenario, we are looking for stocks breaking resistance and moving into new highs.
The requirement other than a close above resistance is a good level of volume. Typically on breakouts you would look for better than average volume. The more volume the merrier. These are the only two requirements. In attempt to hedge the question: Yes, this means we are not using a MACD, Stochastic, or Moving Average for these. They have no relevance in this trade.
Let's throw a few more stocks out there. As of early there are a few stocks that might close at new highs today...
COH
RIMM
GS
SHLD
FTEK
Obviously I missed a few since I only spent 5 minutes looking. Make a few contributions to this list if you have them. This will be today's fishing hole for those who can't find anything going on.
how about fsh,ptv,rga
Posted by
Anonymous |
10/24/2006 11:04:00 AM
How about AXE, mcd,hog. Have retests of new support on HOLX abd FAST. Two questions: Where do we find the info on how to listen in on your audio? And second: What is proper entry? eg SHLD and FTEk closed at a new high yesterday. They may hit a new high again today, but was the proper entry using this strategy this morning, not tomorrow morning???
Posted by
Anonymous |
10/24/2006 12:45:00 PM
Better add NUE onto the list also. Big mover today!
Posted by
Option Addict |
10/24/2006 02:16:00 PM
I agree totally. Jeff, can you add a forum to your blog so that we can just do this every day? I love getting and sharing trade ideas.
Posted by
Anonymous |
10/24/2006 03:00:00 PM
How about DIOD, or am I seeing what I want to see?
Dan
Posted by
Anonymous |
10/24/2006 07:58:00 PM
MOH had a great breakout with a great risk/reward on an ascending triangle today. It will have to make the move quickly, though, with earnings on Nov. 7. Until you see signs of the market reversing, though, who knows? Maybe it will reach its target.
Posted by
Anonymous |
10/24/2006 08:16:00 PM
Zion - Symmetrical triangle breakout with volume
Posted by
Anonymous |
10/24/2006 08:17:00 PM
Hi Dan, I think that DIOD looks like a symmetrical triangle.
Posted by
Anonymous |
10/25/2006 07:58:00 AM
Add today's potential breakouts to the list:
CTSH
SPG
CRM
GYMB
PLCE
BNI
Posted by
Anonymous |
10/25/2006 08:37:00 AM
More potential breakouts:
ESI
NKE
HOG
XOM
JBX
Posted by
Anonymous |
10/25/2006 10:19:00 AM
How do you set a target for a breakout play? I have a method for setting bounce and pattern targets, but not for breakouts.
Posted by
Anonymous |
10/25/2006 11:04:00 AM
Mik,
Measure the pattern preceding the breakout. If it's a triangle, measure the opening. If it's a flag, measure the flagpole. If it's a rectangle, measure the rectangle. Remember, those are MINIMUM targets.
Also, HOG broke out yesterday.
Posted by
Anonymous |
10/25/2006 01:23:00 PM
Interesting strategy/approach.
Those of you who are posting comments, could you please tell me if MANH or POT could be candidates for this strategy?
Jeff, excellent blog! I would love to see your comments/suggestions on entry points.
Thanks!
Posted by
Anonymous |
10/25/2006 03:03:00 PM