By: Scott Redler
On Monday the markets gave no follow through to Friday’s outside reversal. Then, on Tuesday the indices could not break below 1040. Wednesday we had our GAP AND GO that broke us above the most recent Descending Channel.
People asked me why I added stocks to my “go to list” You always change stocks as markets show you new leaders or confirm old ones. During the downdraft from August 11th through August 30th, some stocks acted great.
I will show you the chart of CMG, Chipotle Mexican Grill, that I listed as a potential break out on Monday at 152-155. It broke out yesterday and it’s now trading at 162 this morning. CMG is an example that if you Pick stocks well, you can actually hold them.
Also CRM, Saleforce.com, acted awesome. A great bull flag that triggered yesterday through my buy price at 112-114. CRM is also goes against the tide of people who say you can’t find great stocks that can be held.
Both were different but great patterns to trade. Lots of stocks look good that might be able to support this rally. The next resistance is 1087-1092 then 1100. Print out Price Point sheet if you want more individual stock comments and levels.
P.S. IBD put market back in a “confirmed new uptrend” so I will try and buy dips and look for great break out cash flow trades.
