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With my $ATPG position up roughly 8% today, the temptation is to run to the nearest bar and “start drinking at 11 a.m.,” like some washed-up mook frat boy who refers to blowing lines of cocaine as “going skiing.” Well, I have news for you: A country is defined by its culture, so quit acting like a scumbag and show some respect to society at large.
Instead of chest pounding, I want to run you through my thinking on this holding, namely why I am not taking profits just yet. As you can see in the updated 5 minute chart below, the stock has smoothly held its gains throughout today’s trading session. I see no sign of sellers loudly arguing that the move higher is unjustified. Instead, note how the issue is calmly coming to terms with the higher price, by way of orderly consolidation.
Even on a 5 minute time frame, all major moving averages are holding, and therefore, so am I.
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Indeud.
Would a gentleman add here or patiently wait for an orderly pullback ?
I believe if you are a daytrader, you can try and quickly add on any breakout higher of the above consolidation. I think there is plenty of room higher for a swing trade, but you are starting to chase. That is something you have to decide for yourself, in terms of your goals for the trade and risk tolerance. The prior consolidation leads me to believe it will be a sustained move higher, however.
Thanks Chess. I don’t currently have a position but with depressed natty prices, I’ve been looking at names in the industry. In addition to ATPG, I’m looking at CHK, SD, GMXR. Any thoughts?
They look to be setting up. I will post any that I think are ready.
Baa!
Bought some TWM to hedge my longs.
given the huge short interest any guesses as to when short covering accelerates if the pps holds/creeps higher? a gentleman on a PPT post suggested 13.90ish would be the temperature for burlap to ignite – does that ring true to you as well and if so based on what? thanks for your posts.
I cannot say one price for sure where shorts will panic cover, but the more follow through we see the better after a day like today.