Choosing the Wrong Horse…Or Snowmobile

  • 0

Choosing the Wrong Horse…Or Snowmobile

I spend a lot of time working through scans and charts to find trade opportunities.  Often there are more than I can conceivably take positions in.  This can get even toughers when you have more than one chart in a space that looks ready to go.  This type of clustering is another sign of support for the sector you are looking at which is a good sign, but it also makes choosing difficult.  In reviewing my holdings and other opportunities I passed on, two charts that jumped out were $PII Polaris and $ACAT Arctic Cat. This was one of those times I chose the wrong horse! Looking at the charts below the performance difference is stark.

$PII was just breaking a sloped trend line.  It was a nice set up that looked to move higher. At the time, I looked at the $ACAT chart as a better opportunity I preferred the pattern it was showing.

$ACAT was full of tells with a Cup n Handle with a big island in the middle.  It also was sporting a RSI Positive Reversal inside the tight handle.  my post walked you through every thing I saw here.  I took the position a few days later.  Unfortunately, I am sure my writing the post added to my bias when deciding which name to trade.  As of Friday, my trade is still on and I am sticking by the plan as the stop has not been hit.  That does not make me feel any better about making the wrong choice after watching both for a while, but that is part of  it.  No need to get down about it.  All I can do now is look back and make a determination as to if there is something I missed that would change my decision next time, because there is always a next time and it will come sooner than you think.

If you like what you see, follow me on StockTwits or Twitter.

(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)

The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities.  I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality. Investing in the stock market involves risk and potential loss of principal.  Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation.

About Author

Tommy

is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.

Archives

Categories