MISSED OUT ON MCO.

Well, I placed an order to buy a put on MCO in the morning and walked away from the computer. I was hoping to be filled on it, but the stock dropped again like a rock and my order wasn't filled. Oh, well. Gotta remove emotion from stock trading. Also, I was so focused on MCO that I also did not get in on any trade with BOT or CME. CME dropped again in a little bit higher trading volume. BOT went no where. One doesn't always get to be in on the trade they want.

Overall, today was a pretty quiet day on the market. (Most Friday's are.) Next week, Investor's Business Daily is offering free access to their website at www.investors.com so I would give this a good look-over as this is where I got a lot of my ideas.


I want to also talk to you about breakouts. Breakouts as defined by IBD are: The action by a stock when it surpasses its resistance level: usually a price ceiling at which the stock has previously encountered selling. In many cases, but not always, that resistance level is the highest point in a "handle" portion of a base pattern.



A few days ago, I mentioned that HSR was going to "breakout" if $12.10. If you click on the chart and look at it you will notice a cup and handle formation that began in October, 2006 with the beginning of the left side of the cup and the bottom occurred in early November. The stock then rose in price creating the right side of the cup and a "handle" was formed from mid-January until mid-February. The breakout occurred when the high in the handle ($12.00) was passed and was accompanied by higher-than-average trading volume. That occurred on February 20th. If you get to know these patterns, you trading skills will increase as well as your pocketbook.

Later, I am going to discuss drawing a trendline after a breakout.
PLAN: Add WOOF to watch list.
Good luck trading.
JD