There are certain clues in life that tell us when we have truly gotten “old.” Wearing a “Snuggie” around the house because of the “draft.” Referring to Robert Goulet as “Bob” Goulet. And uttering the phrase I am about to say….
“You punk kids have it easy today.”
You do. When I was a kid, access to information about the stock market was almost non-existent. Not just in terms of data, but in terms of educational materials on trading and investing.
THE OLD FASHIONED WAY
I used to spend hours on end at our local library trying to find anything on the shelves that could explain how the markets worked, or more specifically, how I could make money from them. It was usually a fruitless endeavor, until one day I came across a book that talked about something called “open air analysis.”
For the life of me, I can’t remember the name of the book, though I do remember a picture of the author on the inside flap of the dust jacket that looked like one of the characters from “Mad Men,” about 20 years past his prime.
The basic concept of the book was to invest into companies whose products you liked and whose stores were busy. The modern day version is buying AAPL because you like the iPad and the Apple store at your mall is packed.
CHARTS OFFER ENTRY POINTS
It’s a quaint idea, but one that is only half-baked. There is nothing wrong with buying a stock with a script in mind based on fundamental factors, but you have to marry that with chart analysis to see if a stock is a “technical” candidate, with objective entry and exit points.
TEA TIME
Tevanna ($TEA) is one of those stocks. I was in one of their store this past week and it was packed, and it turns out that I really like their product as well. That peaked my interest to check out their stock chart.
CHART ACTION
The stock has basically been in a down trend since its IPO at $28.00. But after having a gap down on massive volume at the end of March (indicative of a “blow off” bottom), the stock has stabilized and completed a triple bottom. A 20/50ma cross and some nice sideways basing completes the picture.
READY TO ROCKET
$TEA is extremely thin and has a 75% short interest. Even a slight bit of good news could rocket this stock upwards. An aggressive buy is at $13.45, more conservative at $13.75. A tight stop is at $12.50 and a looser one is below the all-time lows.
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Looking for more trading ideas? Read out daily Markets section here.
