In my opening post this morning, I laid out my strategy of seeking technically set up stocks with heavy short positions, so as to maximize the pain inflicted on bears leaning the wrong way. Inside the 12631 Trading Service in The PPT, I went long Brown Shoe Company this morning. In addition to posting the trades in our state of the art chat room, we send out email alerts for the trades that RaginCajun and I make, and here was the timestamp of this trade with entry:
I am going long $BWS for a squeeze. Breaking out from a tight base and low float to boot. In 3/4 position @ $8.49. Stop Loss: Under $8.10.
Since then, BWS proved to be one of those swing trades that starts working right away, immediately sprinting higher. I recognize that the broad market is stretched here, and I am far from all-in long, but it is an encouraging sign to see the market rewarding breakout squeeze plays. Note that in addition to being a relatively low float/heavily shorted name, Brown Shoe was also working through a tight base before today’s breakout, fitting my criteria for what I look for in a quality setup.
Frankly, I will place more emphasis on that type of price behavior than anecdotal evidence about how “everyone is now a bull,” or something akin to that. One thing I am convinced of right now is that focusing on many individual charts is probably the best way to block out the noise and not get caught up in over thinking things. If the market really is going to violently reverse lower, I promise you will see it quickly reflected insofar as breakouts failing, and Brown Shoe types of trades getting stuffed back in my face.
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YOU ARE DA MAN !!!
no way Jose
I thought you were da mann?!?
no way, Jose