Running Hot – Blueprint 6-22-2014
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About Jeff White
Jeff White started trading in 1998 and resides in the Dallas/Ft. Worth area with his wife and two sons. Twitter / Google+ / Facebook / StockTwits
Hi Jeff
Thanks for the chart show and congratulations on your 10th anniversary.
If you draw a bottom trend line on the last 4 sessions of SPWR it looks like a continuation triangle which could break out in the direction of previous trend. Just a comment.
I do have 2 questions:
1 When you have stock bumping up to resistance or down to support,do you ever put in buy or sell stops to initiate the trade?
2 Do you watch overnite futures and do they influence your decisions?
Thanks
Jerry
Thanks Jerry! Yes, I had the short-term triangle drawn on the SPWR chart and do see that as a continuation pattern.
On your first question, I like to have my orders trigger as the stock breaks out or clears a trend line or resistance, as that tells me it is now back on the move. A stock still inside the base might allow for a lower-priced entry, but it also may continue basing (tying up capital indefinitely in a stock not moving anywhere) or fail the pattern on the downside, so that’s why it’s my preference not to enter while it’s still inside the base. So I set up buy stops for a level above the base which trigger the market order once price gets going again. Make sense?
I do monitor the futures but not overnight. Not only is the overnight liquidity poor (takes less to move price), but we also see many overnight reversals happen anyway. I like to watch them in the pre-market to see if strength/weakness is building/diminishing and of course throughout the trading session as they are the closest thing to a leading indicator for the market there is. Those without futures quotes can alternately watch SPY or QQQ.
Hope this helps, go get ’em tomorrow!
Thanks for your prompt reply.
perfect Jeff – love the video!
I appreciate that Achim!