9/16/2010 - Evening Review (PWER)

General Market Outlook

Nothing has changed since Tuesday, short-term trend is still pointing up and primary breadth looks close to overbought. If you're watching for individual breakouts on a pullback, you probably are not seeing to many worth buying. I am playing it safe for now.

It's great to look at stocks returning 100% in 7 months but we need to look at the losers from time to time to figure out what went wrong. I was in PWER until the 15th when it sliced through it's 50 day ma on huge volume. With an EPS Change of 313% last qtr and sales change of a 135% the stock had a lot of promise.

Damage was minimized due to the stops I had in place, but this is an example of what happens when momentum leaves a stock. Looking at the chart, the only thing I would of done differently is not added to the position on the 8th. The stock reversed by the end of the day which was a sign of weakness. The first two positions purchased were one for my trading account and another for my Roth.

2 Response to 9/16/2010 - Evening Review (PWER)

Ty
September 18, 2010 at 7:30 AM

In looking at that chart, I see that you bought on a price breakout but it appears to me that the stock's price pattern hadn't finished the right side of the cup first. Maybe you bought this stock too soon before it shook out resistance?

September 18, 2010 at 1:10 PM

"It's great to look at stocks returning 100% in 7 months but we need to look at the losers from time to time to figure out what went wrong."

Absolutely ! It also increases your credibility with us traders who have been at this for a while.
IMO, this was a good trade because you followed your rules and managed risk.

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