After checking out Ivestors.com Stocks on the Move I see that LOW or Lowes is gapping down bigtime today after a pretty long uptrend . It's definitely broken and it's down on heavy volume in fact you can see its been selling off the last few days. Did somebody know something? Naaaaa! There's no insider trading! I am tempted to buy some puts on this one.
But ACOM has popped up a bit this morning because the market is up. How high will it go back up? I am hoping not too far above $22 which seems to have some resistance, so far its popped up to $21.91, but who knows? Should I divide my attention between ACOM and LOW? If so, when? Well whenever I buy I usually buy my stocks/options at their high for the day and they end up on their lows so I'm usually underwater in the beginning. I would love to improve that and buy at the low for a change and end up on the highs.
I've noticed the professional traders, funds etc., seem to let the stocks drift up or down during the middle of the day and then come in about a half hour before close and sell/buy with a vengeance. This phenomenon is confirmed by my mentor, Jon Wirrick (High Octane Trading author) Steve Wirrick's brother, who recommends not trading before the last hour of the day. Steve recommends not trading during the first hour much either. Hmmmmm. Doesn't leave lots of time does it? Me, I like to put on a 1 day 1 or 5 minute chart and start watching for formations and moving averages to cross as a bit of a clue when to jump in/out.
I have drawn a triangle on a 1 day 1 min. chart of LOW. If the stock drops out of the triangle it should drop about $1.20 based on the width of the base of the triangle which is $1.20. I might paper trade this as I'm not so hot as a day trader but I've made/lost a few bucks at it and probably need to practice.
Right now the stock is bumping off the top line of the triangle. Will it head for the bottom? It's getting pretty close to the point of the triangle. While I wasn't watching, ACOM is being naughty and popped up above $22. Drat! Back to LOW which has just broken up out of the triangle! There seems to be no resistance at all until it goes back up to the downtrending 200 line moving average at about 80 cents above where it is right now. Lets see if goes up there. Of course with every minute the 200 line moving average line is descending to meet the stock. I'm guessing if/when the stock price meets the 200 line moving average the stock will trend lower. Time for a muffin in a cup. Want my recipe?
Chocolate Muffin in a Cup - Use 8 oz. microwavable mug or cup
1/2 egg beaten (just beat the whole egg and pour in half, then you can make another muffin)
1/4 C Sugar
1/4 Cup Flour
Splash of Vanilla
5 Shakes of Salt
3 TB Water or Milk
2 TB Cocoa
1 TB Butter/oil (the original recipe calls for 3 TB. which is sort of fattening but good!)
1-2 TB Walnuts if desired
Stir. Microwave on high for 3 min. Let it cool for a minute or two and enjoy!
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