Breakouts are back...

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Old Feb 16, 2014, 5:16pm   #1
 
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Breakouts are back...

And so am I. I was over T2W for a while but outside of this place I have nobody to talk about trading with and it's getting lonely.

I had previously given up on trading these breakouts as my exit method didn't suit my temperament, trailing the resulting move with an MA meant I was in the market sometimes for months which was mental torture and the financing costs all add up. After some reflection I realised the answer is to set myself targets. One of my influences trading-wise is John Magee and he actually suggests this in Technical Analysis of Stock Trends but I had decided to ignore him.

Attached is a chart for Pepco, energy stock. I went long following the bozo on increased volume at February 10th. Looking to get out at the next area which may offer resistance at 20.80. Initial volatility based stop with a risk reward of 3.5:1 (roughly), stop loss has been moved to breakeven.

I've noticed a lot of consolidation patterns like this in energy stocks recently.

I am not making any effort to time the market, just taking each breakout as it comes.
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Old Feb 16, 2014, 5:52pm   #2
 
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China Diapers started this thread I am watching the mining sector at the moment, particularly precious metals, looks like something may be afoot.

Something interesting is I work with this dude who is a value investing enthusiast (OK I do have one person to discuss trading with), he believes chart watchers are akin to palm-readers, and he came to the same conclusion re miners using his techniques.
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Old Feb 16, 2014, 7:31pm   #3
 
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Originally Posted by China Diapers View Post
I am watching the mining sector at the moment, particularly precious metals, looks like something may be afoot.

Something interesting is I work with this dude who is a value investing enthusiast (OK I do have one person to discuss trading with), he believes chart watchers are akin to palm-readers, and he came to the same conclusion re miners using his techniques.
Double bottom forming on Anglo American too
I came to the same conclusions re mining
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Old Feb 16, 2014, 7:38pm   #4
 
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Double bottom forming on Anglo American too
Ah yes, good spot!
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Old Feb 16, 2014, 9:31pm   #5
 
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China Diapers started this thread Copper on my watch list too
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Old Feb 16, 2014, 10:05pm   #6
 
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GEMD is a possible one for your miner watchlist - Stage 1B, watch for a breakout above the range backed by a strong increase in volume.
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Old Feb 16, 2014, 10:11pm   #7
 
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GEMD is a possible one for your miner watchlist - Stage 1B, watch for a breakout above the range backed by a strong increase in volume.
Nice one, will keep an eye on it.
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Old Feb 16, 2014, 10:19pm   #8
 
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China Diapers started this thread Not trading related but hey, it's my thread.

Continuing where I left off with what I believe will be the defining issue of our time, the technological displacement of labour:

http://singularityhub.com/2014/02/16...strial-robots/
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