Tuesday, September 04, 2007

Today's Trade: GRMN

I bought 500 shares of GRMN at $105.25.

I placed a buy order pre-market at the breakout point, which also marks a new high for the stock. The triangle pattern appealed to me, as well as the strong stochastic and volume readings. I will likely place my stop below the breakout point, with an intial target in the $109-110 range.

6 comments:

Anonymous said...

u mentioned "strong stochastic and volume readings", but it looks like they are all making a lower low while the stock is making a higher high. Isn't that a negative sign? tks

The Market Speculator said...

tks: the stochastic made a higher low, not lower low, which is bullish. However, it did make a lower high, which could be taken negatively. If the stock has made a lower low and lower high, I probably would have stayed away.

I tend to use indicators as a secondary tool, and focus more on price, volume and support/resitance levels.

Anonymous said...

What do you think EXM ? It's breaking out on a bigger volume (even on a low day like last Friday).

Rey said...

Hi,

I don't understand why would you go long, MACD,OBV,MFI and RSI all have negative divergance with the stock making new highs!!!

But I'm a newbie in trading (under a year) maybe I'm not seeing something that I should..

thanks in advanced with any response...

Enjoy your blog greatly
Rey

The Market Speculator said...

I realize there are divergences in RSI and OBV (I don't use MACD or CMF). Stochastics is not so simple, as it was making higher lows.

Divergences are only valid if coupled with volume and *price failure*. The stock broke out over the old high on strong volume, so it lead me to believe the breakout would last. Obviously I was wrong, at least for today. We'll see how the stock responds in the coming days.

Anonymous said...

TMS-

I saw the GRMN breakout just as it happened, but was able to find out why it happened;

Jim Cramer pumped it!

It was bound to fail from the start.