Oil continued its decent today, and oil and commodity stocks followed the path lower. The indexes closed a little higher.
There were two stocks from the Watchlist that triggered. Lets look at those. The first is EDU. It broke out of this small pennant and closed a little higher.

SQNM barely triggered at the open, but didn’t move much higher.

Take a look at yesterdays trigger, QCOR. It had a very bad day. When I posted the chart on Sunday night, I mentioned that this would need heavy volume. It triggered, but with low volume. This is the danger of buying low volume breakouts. It indicates that there isn’t participation by the institutions. These breakouts should be avoided, or at the very least, not held long and with tight stops.

Meanwhile, CYBX moved slightly higher.

The purpose of this blog is to keep myself current on what’s going on in the market and check charts every night, and hopefully help some other traders in the process. I don’t talk about my personal life because I want to keep this focused on trading, and I’m not that interesting anyway. But I am getting married this weekend, and will be (and have been) very busy. I will be taking some time off starting now, and should be back with regular posts in a couple of weeks after things settle down. I’ll have one more post tomorrow, and then I’ll be taking a break.
No trade ideas for tomorrow.
Good luck and good trading!
6 Responses
TraderMD
July 24th, 2008 at 12:26 am
1Congrats my friend.
Enjoy your time off. While the market maybe putting in a bear market rally, this definitely isn’t the most suitable environment for swing trading.
I’ve noticed all kinds of break outs reverse and quickly become fake outs.
T Thompson
July 24th, 2008 at 6:28 am
2To quote you … “should be back with regular posts in a couple of weeks after things settle down”. Please be aware that since you’re getting married, things will never “settle down” …. congrats anyway!
VTCastle
July 24th, 2008 at 6:46 am
3Congrats, and enjoy the moment! I’m new to your blog and it’s a welcome addition to my daily chart reviews.
Tyro
July 24th, 2008 at 7:15 am
4Congrats! Thanks for sharing your ideas with us but you’ve got to put your family first, especially now. Enjoy and we’ll be looking forward to your return.
Mo-Trader
July 24th, 2008 at 10:02 pm
5Thanks guys, I appreciate it. Good luck trading. It’s tricky out there right now. Hope to see you all back here soon.
Kriszta
July 25th, 2008 at 3:31 am
6Congratulations also from Hungary, and thx for your posts! I found this site just a couple of months ago, and I am enjoying it very much. Our trading interest is quite similar.
Be careful with SQNM, there are some strong bear divergences in it.
Have a nice time off!
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