Check out my thread called "Breakouts" ... many times a stock is not overbought on a breakout, like this one, because its been trending down for some time. http://elitetrader.com/vb/attachment.php?s=&postid=1370117
Reverse head and shoulders on chart has completed. Warning: Fast Money is doing a segment on shipping tommorrow night and might go bearish on shipping.
I guess it was overbought, I sold out at 8.65 it closed at 8.55. maybe i should have stuck it out but maybe I can get back in after it pulls back? what would anyone suggest as a good indicator of a good time to get back in NM?
Beware. Trends continue more often than they cease. Many a potential trader has hung up her spurs after trying to pick tops and bottoms.
=================== kiethT; Nice uptrend, nice shallow sell volume,which is another nice part of that uptrend. Uptrend may well continue, but i closed long SPY position, today because of lower lows, lower highs also. Actually had planned on shorting QQQQ some more; but the least likely scenerio happened, kept closing above it's trading range of $45.45. Smaller time frames could have profited,qqq; but if i ever do trade NM, not likely to ride it/''stick it out'' ,11%+ loss just to see ''if'' it bounces @50dma. NM @50 dma [and above$8.00] has found support in past year; but i havent looked at that sector lately.
50dma looks like a nice fit, Im just learning thankyou I wouldnt have looked at that. What would my chances be of shorting this down to 8@50dma?? to risky? sometimes being new, everything seems moves against me if I short it it will reach a new high tommorow, if I buy back in tommorow it will fall through resistance any words of encouragement