How To Buy Stocks After Today's Advance Tuesday, January 17, 2012 by David Grandey of All About Trends

Should we chase the markets here?

 

OR

 

Should we do what has delivered us a 79% return in 3 1/2 years which is ALLOW STOCKS TO COME TO US?

 

After all, we've all seen for the better part of 2011 that chasing buses has been hazardous to ones health now hasn't it.  This is especially true for those who are not in control of their emotions and are of an impulsive nature.

 

So what would you rather do? Leave it alone or allow yourself to get sucked into all the hoopla.  After all, as you can see from the chart below major resistance is just ahead folks. Another gap up day like this morning puts us at Major Resistance. And then what? Have you thought about that?  All AFTER we've been running for the last 3 months?  

 

 

 

Thanks anyway we say. If we miss the next 15 or so points on the S&P 500 so be it.  It's only January you know. And we'd rather allow the indexes to stage a Pullback Off Highs (POH) before we consider anything on the long side.  Should the markets pullback, we are prepared to buy stocks that have also pulled back into support.

 

So let's take a look at HP:

 

 

 

Here we have a stock that is pulling back to support at the uptrend line and 50-day with other areas of support below that.  It's tops on our watch list.  A break above the pink line triggers a long side trade.

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Recent articles from this author

• Don't Let Fear Keep You From Making Great Trades - Thursday, April 26, 2012
• Here We Go! - Thursday, April 19, 2012
• When AAPL Sneezes The Whole Market Catches A Cold - Monday, April 16, 2012
• Why We Don't Use The 7-8% Stop Loss Rule - Friday, March 30, 2012
• Market Higher Or Lower? Does It Really Matter? - Thursday, March 08, 2012

About the author

All About Trends is a subscription based newsletter service focused on helping individuals secure consistent profits in the market by trading what they see, not what they think, hear or fear.

In the stock market, there are only 3 things you need to know:

1. Uptrends and how to trade them
2. Downtrends and how to trade them
3. Changes In Trends and how to identify them

We'll teach you:

1. Whether You’re An Investor Or A Trader, All Entry Points Are The Same
2. How To Buy Stocks At Alternative, Risk Adverse Entry Points
3. How To Short Stocks To Maximize Returns
4. When To Sell Your Winners
5. How To Focus Your Goals For Consistent Gains In The Stock Market
6. What Just $500 A Week In Returns Can Do For You
7. Proper Risk Management
8. How To Set And Manage Stop Losses

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David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains.  A successful canslim-based stock market investor for the past 15 years, he has worked for Meriwest Credit Union and Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.