Thursday, October 26, 2006

Today's Trade: CMED

I bought 700 shares CMED (China Medical Technoligies, Inc.) today at $25.15. The stock has alot of things going for it techinically. It broke out on strong volume over resistance, followed by a low volume pullback that bottomed with a bullish engulfing pattern. This is one of my favorite long setups. Also on the bullside, the stochastics are not yet oversold and MACD look like it's about to cross the zero level.

Note that I went with a slightly larger position size than normal (my standard is 500 shares). Just as I lower position size when I feel I am taking a risk, I go a little bigger when I feel really confident.

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