Breakouts everywhere!!!

Well, the stock market really took off in the early afternoon. Pretty much any stock that you owned probably went up toady. The reason for the positive response is that the economy seems to be cooling off meaning the Federal Reserve may not raise interest rates any more and the economy may be heading for a soft landing rather than a crash. Good news for investors.

Let's look at the stocks that we have been watching. Last night, ICE was mentioned as being in a potential buy point. In fact, it roared out of the beginning and didn't look back all day long. If one were to have bought in today, the stock rose more than 5.75% on huge trading volume. It is too late if you didn't buy in today. It is well extended past a proper buy point.

The same exact thing could be said about WCC. (Remember, this is different than WDC) WCC took off and also didn't look back closing up nearly 7% from yesterday's close. Too far extended to buy now if you didn't get in today.

FMCN is showing good signs of a revival with increased trading volume today and a gain of 0.32%. Keep the target of $61 in mind.

HSR bobbled and weaved not knowing which way to go. Remember that this is a risky trade as it is bottom-fishing. Trading volume was higher than the past couple of days for HSR, but the stock closed near its high for the day. This is still a positive sign.

WDC looks as if it is going to use its 50 day moving average as support for now.

LTM has now resumed its uptrend with a gain of 1.8%. Along with a rise in price and higher trading volume, a rise in the stock is again on its way. It is still OK to buy up to $49.00.

Be wary; however, when things look optomistic and sometimes the time to be pessimistic. Expect the market to make a few more days of gains, but then watch out for another pullback. Having a price target in mind is always a good idea. Treat every trade like a business plan. Before you enter a trade, make sure you know when and how to exit. One doesn't walk into a mall and then forget on how to get back to their car so don't just sit in the mall and spend all of your money. Get it?

Also a note on entries and exits. Stocks have shown over and over that after reaching a low, they tend to rise about 25%. If you can't exactly pick out a low, set a price target of 16% above your purchase price. Why? Well, if you take your wins at 16% and stop your losses at 8% you have a 2 to 1 win to loss ratio and for every win you can have two losses and still break even.

Go to http://www.stockcharts.com/ and type in the symbols to look at what these charts look like. There is also a link to the website to the right of this blog under "Stock Charts." Remember the map that you need to get to your final destination. Well, a stock chart is your road map to wealth so learn how to read them.

DEIX is a stock that appears to be forming its "handle" of a cup and handle. (Note: you can click on the light blue words in the sentence and it will take you to a website to give you a definition of words you may not know. You can also click on the chart to enlarge it.) If you wish to be aggressive on DEIX, buying at the low portion of the handle at $15.30 to $15.50 would be OK, but a more conservative move would be to buy at $0.10 above the latest high which is a buy point of $16.20.



I am going to add another "bottom feeder" where it seems as if the stock is rising and I am trying to buy near the bottom creating a longer-term trade. PACR has crossed back above its 50 day moving average and has recently gained a lot of support near $26.