Dave’s Trading Diary – Entry Signals So Close You Can Taste It

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Hi guys,

Well company reporting is in full swing, and things are about as exciting as it gets!  As I mentioned in this weeks Market Watch, you can tell by the way the market is jumping around that no one really knows what they are doing.  This kind of price action is usually seen at market tops or market bottoms – so I’m keeping a close eye on which way it breaks out.  This is why it’s essential for you to have a method that you trust and have tested to know it works. 

As usual though, the price charts are telling the story, even when the economists, brokers or financial planners can’t.  In fact many stocks are so close to an upward breakout you can taste it – close, but not yet confirmed.  As soon as we get confirmation, I’ll post it here of course.

So how is it that the price charts are telling us the story?

1: Almost all of the stocks that had disappointing earnings so far were ALREADY in a down trend according to the rules I use (think TLS and CPU).

2: Almost all of the stocks that have had solid buy signals have come out with decent earnings as well.

Getting back to basics is what it’s all about.  And using a simple, powerful, tested method.

But what about individual stocks this week? 

Well as I mentioned, there are a lot of close signals, but no more confirmed as yet.  In the mean time my current holdings RIV is still going – no Dow Theory exit as yet.  IGO and GUD still above their recent buy prices.  BKN and ABP are the only two easing off a little bit – still not near their stop loss, but not taking off as I’d like.  The best I can do is let the trades pan out – they either go up or get stopped out – no mess, no fuss.

IPL, DJS, MGX and PNA are holding up nicely despite a shaky week.  Trends do take time to mature, so patience is the name of the game here.

Looking forward to a busy couple of weeks ahead as these signals come to fruition!

Happy trending,

Dave

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August 15, 2010  Tags: , , , ,   Posted in: Dave's Trading Diary

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