As far as I am concerned, there is nothing like watching a trade set-up payoff with a great breakout.
After all I spend enough time looking for these trades. To get it right is a great feeling.
Like Crimson Exploration taking off today on news about…something. Does it matter, really? I say no and I’ve spent the last 3 years completely ignoring the news in all forms. Honestly, I’ve never missed it.
Highlighted in the Sunday Night Watchlist, $CXPO had a great consolidation pattern near it’s 50 day highs and was looking ripe for a possible breakout.
With trades like this, sometimes I wait for the breakout — and sometimes it’s bought before.
After all, we’re retail traders, right? We have jobs and we have lives. Sometimes that means getting in early. Sometimes that means looking for sneakouts.
As for the general market, I have my doubts about how long the current trend will continue — but I have no doubts about breakouts like this.
Here’s the chart…
The all important day with these positions is the day following a strong move like this.
What we want to see here is a strong follow-up day. Lots more volume and an even bigger move. Because a lot of these breakouts tend to be one day events we have to be prepared for the move to fizzle out.
Which is fine. We have to take what the market gives us.
So what’s going to happen tomorow? Who knows. But the intraday chart is setting up a nice bull flag. It would be great to see price continue in our direction.
See the volume rise with the breakout and lower with the consolidation. That’s a good sign. How good?
We’ll know tomorrow.