If you are currently sitting at your trading desk wondering how on earth you missed some of these breakouts, don’t worry there will be more. What ever you do, NEVER CHASE. You’ll end up like a dog chasing the car he can never catch, except unlike the dog; The car will most certainly reverse and run you over before leaving you behind. This is something I learned rather quickly, if you miss a breakout point and enter late you will generally get shaken out. If you manage to maintain your position, it was through pure luck or absence of a trading system. I’ve been missed breakouts left, right and center the last several weeks, but have not chased. I blame these missteps on distractions that I will correct immediately.
Moving on, there are still break out chances yet to materialize from this other worldly rally. I say other worldly, because there is nothing on this entire world that could be pushing stocks up. Must be positive economic numbers coming out of Mars or possibly Saturn that I have yet to hear about. Yes, yes I know, “markets bottom on bad news and top on good news”. Except I don’t believe we have heard any truly startling news. Sure we had some weak economic indicators that have since turned mildly positive, sure our housing market is showing signs of life, but Europe is completely dead and our debt situation in beyond alarming.
The breakouts I’m talking about are as follows; NFLX above $99, RIMM above $18(if you missed the previous breakouts), AMZN above $185(you missed this one today, but a pull back to $185 should be bought IMO), AAPL above *$427*(I’m slightly worried about the action and won’t play this breakout, seems destined to fail), a handful of banks are getting ready to break either this week or early next week and MSFT (broke out, but pulled back to breakout point today).
These are some breakouts I will be watching this week.Good luck on your trading.
UPDATE: Did anyone see this article? http://www.bloomberg.com/news/2012-01-18/s-p-500-profit-season-has-worst-start-in-years-chart-of-the-day.html
