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Monday, November 20, 2006

grow

Ok, I'll have to admit that where I bought GROW was not a low risk entry (initial stop was 45.20-ish). Then why did I buy it where I did? Simple, I was watching the price-action. It kept bumping its head against the 45 barrier, but each time it pulled back, there was buying support just below 45. So when it finally decided to break above 45 for good, I simply "knew" (by invoking trader's intuition here) that 46 and 47 would be simple hop, skip and a jump for this stock. The other thing was that I've gone through a couple previous occasions where I was just watching the stock take off without me because I was staring it in disbelief that it was capable of doing what it was doing right before my eyes. GROW is another one of those "I don't believe it" stocks. Technicals say overbought, and I thought Friday was the start of an orderly pullback. But today, it told me, "nope, I want to go higher, now go deal with it."
There was no anticipation, no prognostication here - in fact, I was actually looking for it to drop back to 43.

Because GROW became even more overbought today, I will need to keep it on a tight leash - raised stop to 47.

2 comments:

Trader ZBS said...

haha, GROW pushed up again. Congratulations for this greattrade!

zbs

Phileo said...

Hi zbs,

Like I said, I don't believe it! But I bought anyways, and got lucky.