RE: US Stocks and ETFs - Watchlist and Discussion
(2019-07-20, 05:42 PM)briansmith456 Wrote: Thanks Isa but most of these really strong looking charts are already 50%+ above the 10 sma on the weekly chart so even if they break above last weeks highs you would still be a buyer despite being so far extended from the 10 sma on the weekly?
For example, AG is about 45% above its 10 sma weekly now so you would still buy it if it cleared last weeks high?
SSRM is about 25% above its 10 sma weekly so I would be more comfortable buying it if it breaks above Friday's high of 16.11. I am trying to find miners like SSRM that are under 30% above their 10 sma weekly that have had good volume.
No, none would interest me at the moment, as they are all way too extended for my risk parameters that I've mentioned on here many times. As I'm always looking for a volatility contraction pattern (VCP) normally. Or when a stock has already broken out in a strong sector (like my entry in KL last Monday), or at least a small consolidation for a few weeks on lighter volume near the highs, but still showing potential for a further move.
For me if Silver is indeed breaking out into Stage 2 (Spot Silver closed at $16.20, which was the previous high in January, so not a confirmed Stage 2A yet, as it couldn't close above the breakout level, although it's clearly very promising), then there will be better, lower risk setups in the months to come, when it's had time to digest this initial short covering rally. As I prefer to trade from a lower risk setup once a Stage 2 is established and the path of least resistance is clear. As the early Stage 2A phase can take many months sometimes, with a lot of churning back and forth. So I would urge some caution, as I can see that you are excited to get in. But try to put your emotions aside, and trade methodically. Like you've heard me say multiple times on here. Always consider the risk first and what you could lose, and make sure to trade proper setups with that in mind.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.