I was stopped out of Green Mountain Coffee Roasters (GMCR) this morning for a -4.5% loss, but have just now replaced it with a new position in Sears Holding (SHLD) with a buy-in at $61.10. So far so good, and the market is showing signs of the bulls coming back to the table here and buying the dip that started yesterday.
I'm a big fan of these pullbacks to support, because typically if they hold the support level (and I usually wait before buying to see if that is the case) they will have already come off of their overbought levels and have more momentum to carry with them the second go-around. In the case of SHLD this is exactly what we have taking place...
Here's the chart with stop and target included.
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Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>