During times when volume is slack and there is not much going on, I like to scan for stocks that have recently broken out or broken down, and have re-tested their breakout/breakdown pivot points. These types of setups allow entries into stocks that have already begun making a strong move, but are taking a breather. It is not an anticipatory setup. The breakout or breakdown has already occurred, and the nimble trader is afforded a lower-risk entry just before the stock begins to move again.
Urban Outfitters, Inc. [[URBN]] is a good example of the breakout and re-test. The volume on the breakout was good, while volume on the re-test has been slack. That is exactly what one wants. Watch the MACD here. It should stall out and begin moving back over the signal line if this trade is going to work.
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Teleflex Incorporated [[TFX]] offers two levels of support: One at 62.50 and one at 60.00. Also note the Golden Cross of the 50 day moving average over the 200 day moving average from beneath. Volume on the breakout was good.
Arena Resources, Inc. [[ARD]] is a good example of this setup for a breakdown, short play. This one has the added benefit of 50 day average resistance. Even with Gustav coming ARD does not look very sure about shaking off its breakdown and beginning a new uptrend.
Let’s just put it out on the table.
You purposely mentioned ARD because I am long.
Bitter man. Very Ducatiesque.
It came up on a screen Fly. It was one of the best examples of a breakdown and retest that I was able to find without searching exhaustively.
All that being said, just beware. It does not look healthy. If it can’t rally here, with Gustav, just keep a close eye on it.
I’m not bitter. What do I have to be bitter about?
The thing about breakdowns/breakouts, if it fails to occur, it can go the other way significantly– resistance now acts as support.
This will be fun to watch.
We will put the Snoopy Av on your header.
You are The American Ducati.
Fly, you will not put the Snoopy avatar on my header. Also, you wil not refer to me as The American Ducati.
Other iBC bloggers have taken the other sides of your trades.
You’re aggression is misplaced. Go over to Ducati’s blog and fuck with him.
Cajun, I assume you are refering to ARD. I wouldn’t hold it short if it breaks through resistance.
I will do what I please.
As a matter of fact, I may just shut down all the blogs for August and go on vacation.
For the record:
Rarely do any iBC bloggers take the other side of my trades. Thinking back, only Alphadawg has. But he is old and cranky.
You, on the other hand, continue to act on Ducati’s behalf, even egging that God forsaken man on—knowing I hate him more than Aaron Heilman and the Philadelphia Phillies.
Do whatever tickles your yankee fancy. However, I will go on strike, should my header be altered with anything related to or referencing Ducati, including Snoopy.
WTF? Egging Ducati on? Acting on his behalf? Are you serious? Prove it then.
You said something to the effect “Ducati will come” blah blah blah.
Do you guys need to ‘hug it out’?
You’re right. On your “The Fly Has a Secret Win” post, I wrote in the comments section, “Ducati is gonna love this post!” I can agree that that would egg him on; however, I still fail to see how I have acted on his behalf. Nor do I see how other bloggers comments about him are exempt from your ire. Hell, last time I checked, you had banned him from all blogs except for mine, and then I had to tell him that I would ban him if he didn’t behave.
I take the others side of your trades from time to time.
My “leech status” affords me “sovereign immunity,” thank the gods.
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That said, I’d probably be long ARD here, and short URBN, that train wreck waiting to happen.
Sorry Wood.
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Jake et. al., its a slow week. Not much is setting up. Not many breakouts, not many breakdowns. I just wanted to do a post where I talked about what I look for during these types of periods. These three stocks showed up on the first 2 screens I ran. I wanted an example of a long and short setup.
It is has nothing to do with being right or wrong. I do not have positions in any of these stocks. They were simply examples. I’m sorry that it has stirred up the Fly. I should have just deleted the damn thing.
When I want to fuck with the Fly, or challenge him on some level, I think I’m obvious about it. It should be obvious that that wasn’t my intent.
Whatever. This is getting ridiculous.
Wood, I welcome your “spats” with the Fly.
It’s like the best Gleason and Carney routines.
Do not back down to his Yankee bluster. Bring the charge, Pickett.
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sack up and take it to the octagon
Woodshedder is out to get me. I know it.
Who said I’m paranoid?
lol…