Stock Talk – February, 2016

Stock Talk

Jon D.

Jon D.

There can be more than one method to use in trading any stock. Here is what I did with BC this week. The start was to buy a position in BC which I did on 01/27 at 42.66 well within your guidelines. For me, I always pay attention to charts. As we all know there is a lot of volatility going on in markets. One of the systems I use is Bollinger Bands, seeing the candlestick on 02/22 was at the upper band level I sold all my BC shares at 43.65 at a small profit. This worked well even if the profit was small. It was obviously good timing since very next day it was down and the two candles together formed a Harami a term in candlesticks. On the 24th it had a gap down open in the area of a pivot point around 41.92. I have an annotation I would buy again at a lower price. Just before last nights close I bought shares back, my reason was yesterdays candle was called a Hammer – looks like a croquet mallet. In candles it is said a hammer hammers out a bottom. I bought with the expectation it may rise today on 2/25 – we shall see. This gave me a better entry point. While some members may be disappointed it went down, others may realize it was an opportunity to buy more. I intend to stick to this method and look forward to another profit arriving say first week of the next month. This way I am managing my risk.

About two weeks ago I had Bloomberg Radio on, and a commentator was referring to the smart guys and even smarter ones who do research which lets them know a stock will perform well when others don’t know that yet. In your case the even smarter guys may be women. I am looking forward to profiting due to an “even smarter woman” – you. I think I may have been confusing it was my gym membership I renewed [sorry about confusion]. I noticed viewing my charts all the charts were up in Profit catalyst – except BC. As it says in the Tai Chi Classics that which goes up must first go down. Hoping to see BC spring up in the very near future.

Thanks for being a solution,
Jon D.

Linda McDonough

Linda McDonough

Jon,
I am delighted that your profiting from the volatility in the market. Certainly having strong conviction on a name (as I do with my Profit Catalyst recommendations) gives you a solid base to leverage your option plays. Thanks for the comment.
Linda

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