Stop the Games, Trading is a Job
- Posted by Greg Harmon
- on March 17th, 2014
They say the stock market cannot be played like a game. You need to work at it full time and study hard to uncover gems to buy or sell. But today it is a game. Gamestop, $GME, the retailer of video games, is sporting a great looking chart. Take a look.
The 2 month consolidation under 39.30 finally broke today with a move to the upside into the gap. That gap lasts until 45.09 above, over 10% higher, and coincides with the longer 200 day Simple moving Average (SMA). As it moves into the gap the Relative Strength Index (RSI) is bullish and making new highs and the MACD is rising, both supporting more upside. Whenever a move like this out of consolidation starts it is an excellent opportunity to a high reward to risk trade. Use a stop back into the consolidation and adjust it higher as the stock price rises. I bought some today at 39.75. just because you are supposed to work hard at trading or investing does not mean it has to be complicated.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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