First I need to say that it sucks not being able to do this thing full time. I feel like I leave so much money on the table. I have had a lot of good positions but I have to exit them before I reach my price targets. I have watched day in and day out a stock I was trading go higher. I really can not wait to be in the market for the entire day. But enough whining.
MS set up very nicely these last few days. Today the trade was a break out of a multy month resitance level at $32. This trade worked as resistance became support. The patient trader got to see a move to almost $33 by market close. But that is not the most exciting thing. At the end of the day notice how much volum came into MS at the last few minutes of the market to drive it higher. Looking at the charts this thing still has a few points left to move. See charts below:
I will look to accumulate some share around the $32.50 level in this MS and if this level failed to hold I would look to accumulate as clost to $32 as possible as this is the more important level to hold. I really like the high volume into the last upmove into the close.
Lets see how this one plays out.
Great call Dom! You were all over this one. I especially liked how you mentioned that it was hitting some choppy trading during the open and I believe it was Kestler who said something like "it's just basing". That gave me the confidence to hold too. My problem was not following through on my plan to hold until $32.50... but yeah if you were trading all day you would have made a ton of $$$ because you seemed to be sync with this one having stalked it for a while.
ReplyDeleteI especially like how the chart for the SPY's and MS are both setting up to fill thier gaps from September of 2008. Take a look at the daily for both to see what I am talking about.
ReplyDeleteYou might want to take a look at the short interest in MS last week vs this week. That could have been short covering because it broke resistance. To see that kind of volume after the move it's had you would expect it to be in the form of call options instead of outright stock ownership. I'm not sure if where or why the volume spiked is of interest to you but just thought I would throw it out there.
ReplyDeleteThanks Jason.
ReplyDelete