Wednesday 10 July 2013
Stocks
In my last post I said I would be taking a look at stocks, and indeed I have been doing some study, trawling through all the stocks in the US market, and picking out those stocks that are acting as strong or stronger than the Index. I saw an opportunity in Citigroup (C), and, as you will see in the chart below, it has responded to the strength in the background and is indeed going up. I'm kicking myself for not going long back when I saw the opportunity, and am now looking for a test in a rising market to enter a trade. My guess (and it's a guess because you never know what the market will do because a contradictory sign could come in any moment) is that it will continue up to that top trendline. It has been in an upward trend for some time, zigzagging through the trend channel. I also have a long list of stocks in my watchlist that are acting as strong/stronger than the Index, and am waiting a VSA principle to get in, namely a test in a rising market.
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Hello Rita,
ReplyDeleteI am delighted to hear you are getting interested in studying stocks. I have looked at the chart in the Citigroup, although not trading it at the moment.
May I ask the reason you are looking into stocks? You are quite successful at trading the Dow futures.
Edmond
Hi Edmond,
ReplyDeleteLooking at stocks because it's something Tom Williams is doing and he's ignited my interest, so we will be analysing stocks on a regular basis from now on. Also, he says stocks are more reliable and easier to trade - you just have to be prepared to put the work in trawling through. They are good for long-term investment, can be traded on a steady daily basis, and also less stressful to trade than the whipsawing of intra-day charts. Have you noticed the last two days on the Indices have been awful to trade and I haven't touched it? They have ended as narrow bars (similar to the action we see on a Monday when they are testing) and this means during the day they have whipsawed it and it has literally gone sideways - very dangerous. I guessed this might happen as the Dow has reached an old top which is going to cause some hesitation. Have to watch as it unfolds. I am away next week and quite busy this week, but will keep an eye on it if/when I can. Sorry about Friday's webinar. There was no link on Gotowebinar when we went to sign in! And no link in the VSA Club! We were expecting to do something. Will be back this coming Friday.