Earning were blowout and they are buying out Maidenform, I am waiting to buy if we dip below $63.40 to carry until we get $68.00, all thoughts appreciated.
I would not do that: http://finance.yahoo.com/q/ta?s=HBI&t=6m&l=on&z=l&q=c&p=b,v&a=m26-12-9,ss&c= The price action has come off the top bollinger band and the volume spike is diminishing as the price drops...not many more people wanting in at these levels. Wait long enough and it could be a decent short as reality catches up to the euphoria....lotta people paid top dollar for it. At a minimum, it'll level out for a while if it's in strong hands...at least that's what the chart looks like.
My bad. I read the chart from the link I posted above. But I forgot that the chart I posted lags by a day, so it was one day outdated. Tonight it updated and I see that the stock popped up. I sure wouldn't have predicted that! Here's an up to date chart: http://stockcharts.com/h-sc/ui?s=HBI&p=D&yr=0&mn=2&dy=1&id=p35906877142 What to do? I can't tell. Once they pop up like that, I honestly can't tell, but I fear them. I can't gauge whether the volume spiked from the smart money getting out and taking profits, or a bunch of people jumping in. I view the trade right now as a complete gamble. If you buy in, use a tight stop. SM
The chart of HBI is strange, after they made their offer for Maidenform holdings, it started climbing before earnings. Bally (BYI) was $59 the day before they bid on Shuffle, since July 16 BYI has climbed up to a new high of $72.11 today, closed at $71.68. It appears high, I am going to bid if I can get this a tiny bit lower, thank you for checking out the Chart! Peace!
Hi "Smart Money" Who do you recommend for a good book on learning how to better read charts? I use fundamentel analysis with my investments and "price points, volume increases over 3 to 15 minute from previous days same time frame. Have you read Nick Darvas's book on "How I made $2 million in the stock market" back in 1954? Nick used price points on round figures to pick his stocks (long or short) and it worked out well for him. His book helped me get over a hump when I added it to my fundamental approach to investing along with lots of chatter surrounding any stock. Thank you again for checking out my HBI chart. Another Chart that's interesting to look at is Pilgrim's Pride. Every Quarter for some time have been great! PPC's earnings blowout changes their slow price movements to fast accumulation. How do you change your approach when great earnings come into the picture? Do you have a smoothing constant for Earnings Surprises and input costs reduction? I have a good amount of shares, holding them since $6.8, added with the previous Qs good numbers $10, $13 and now I bought more at $17.80s. At the rate it's moving along with factors of chicken feed price decreases, I will buy more once we hit $20s. I thought you might enjoy looking at this chart and comparing it to Tyson TSN or Sanderson Farm SAFM. This sector has been under heavy accumulation, SAFM, TSN, CAG and I like what I am seeing. The Egg industry "CalMaine CALM" has been on a tear too. According to Thompson, Cargill is doing well and all the public and private companies are enjoying a nice price increase.
Looking at a chart of PPC, it looks like July 1st all over again. It pops with a big volume spike (...the last one took two days instead of one...) and then it calms down, but still rises. If history repeats, it will drop back again to a well fitted moving average and then resume upward. I'd wait for that, and reap the heart of that move and then get out and keep monitoring it to try to predict the next pop up. Most of the money has already been made this go-round based on it's pattern. It'd be kinda cool to set a buy order, to only purchase it when it jumps upward. You might be able to grab one of those upward moves eventually. Regarding the stock that opened this thread (HBI), for the last week, the daily volume has been two decreasing triangles. The textbooks would say that it might have one more spike up... that seems imminent...like Monday. I'd buy it and keep a tight stop...seems worth the risk I haven't read any of the books you're advocating. I have read a couple highly recommended books and then studied a lot of patterns. Some people highly tout the book, "Bar by Bar", but I take exception to the fact that they place almost no emphasis on Volume...I don't see how anyone can trade consistently successfully without watching Volume like a Hawk. I like "The Master Swing Trader" by Alan s. Farley". Lots of good stuff in there, and candidly, of the few things that I feel do work, his book does teach them. In other words, I can find much that is true in there, and I can't find anything false. I do think he goes out on a limb trying to teach esoteric rare patterns...I don't think that's needed. I think most of good trading comes from learning the most reliable patterns and the rest is money management. SM
I like your last statement: "the rest is money management." Oh how true that is! I don't care how good a trader is once you are constantly swinging at the fences you will blow up! I think I have "Master Swing Trader", will have to review some of the concepts taught in the book. After reading some esoteric books on Charts I was highly disappointed because it all sounded like bafflegab! I agree that HBI will have another good spike and grind for some time until the next EPS report. Thank you!