Thursday, July 24, 2008

Base & Break Bottom Reversal - Arch Coal, Inc. (Public, NYSE:ACI)

ACI set up a low risk short when it paused at yesterday's late day lows, but I missed it. After bottoming at S2, it carved out a 3 pivot point base for a nice long entry. Once it took out the down sloping 20 EMA, I had a good feeling that it would retrace all the way back to yesterday's lows. Now it looks like it wants to be a cup & handle long. Keep it on the focus list for tomorrow.

Financials were so overbought so I took a chance on LEH. There was a trend line breach and I'd like to see it retest the trend line or 50 SMA tomorrow and set up another short. I'm targeting $17.00. LEH has pivots at every dollar level which makes it easier to time entries and exits.

2 comments:

timo4sho said...

Hi Jamie,

I've been following your blog for about a month now ... and I really like your trading style. Good Trading! My compliments ;-)

Yet one question arises ... do you scan for your stocks or do you have a set list of stocks you follow everyday?

Thanks man!

Timo

Jamie said...

Thanks Timo,

I have a watch list and most of my trades come from there. However, I do scan both my WL and the market for NR7 and range breakouts. I also check for high volume gappers in pre-market. Without the Trade-Ideas scanner, I'm sure I would miss some good trades from the WL because I can't absorb all of the action at any one time. So the scanner is very helpful.