Gonna do something different with this week's setups: Instead of buying stressful breakouts that are bound to fail in this nasty chopfest of a market. This week i will completely switch my attention to buying strong patterns as they fail into support zones. One thing i noticed about this market is that breakouts FAIL and fail often as the choppyness of this market rips nice patterns apart and makes them fail into support zones marked by moving averages or trendline support zones: this kind of action in this crappy environment shakes most traders out of their shares as the stock paints an illusion that is is failing, stops everyone out, overshoots to the downside and THEN reverses HARD to attack the original breakout zones(and in some cases new new highs).
Check out what i am referring to by analyzing ROVI stock: See attached ROVI chart.
The other charts are stock setups i will be watching next week.
nice title. all too true.
ReplyDeleteYou're just sayin that cause you're B.OT.D. ;-) HAHA! what do you think? Am i right about this? your thoughts since you specialize in buying dips. Thanks in advance.
ReplyDeletebuying dips always works, until it doesn't. lol.
ReplyDeletedon't want to be left "the STUCK HOLDER", as you appropriately call it.
example: NVDA ... ouch, painful never ending dip dive.
p.s. i try to find "daily bottoms" and daily pivot points to enter trades, usually scalp common or options. .... good times!