Green Mountain continues to march higher…just one penny below resistance. Are you using a trailing stop? (December 20, 2012)
GMCR
I’m Dan Fitzpatrick at SockMarketMentor.com on Thursday, December 20th. I’m going to take another look at the Green Mountain ( $GMCR Green Mountain Coffee Roasters Inc ) here. I mentioned, the other day, that this $42.60 was really a key level, that was a real big high here, kind of a climax high, you’ll notice that this occurred, look at the volume down here, this high occurred on lower volume than the initial break out. Now, typically when that happens you’d expect more of a pull back than we got here, just didn’t get much of a pullback in Green Mountain ( $GMCR Green Mountain Coffee Roasters Inc ) at all, and that’s a good thing for the bulls. Look, this is kind of a tough pattern to trade because you can hardly look at this as consolidation; it’s really more like just a new uptrend. So what I’d suggest doing is, it’s actually pretty simple, just keep a trailing stop running along a trend line like this; it’s kind of hard to use any particular moving average, I guess you could use that 8-day or the 10-day moving average, but instead just keep this trend line intact and as long as Green Mountain ( $GMCR Green Mountain Coffee Roasters Inc ) stays above there you’re good to go. If you’re looking for an entry this is probably not the time, you should already be long, I’ve been talking about this for a while, but you may be new. If you want to be long, wait for some type of a pull back to buy, right? No, wrong, wait for a pull back to buy, and then evidence that the stock is actually still being accumulated, and that would occur when you see another one of these little opened green boxes like that, that’ll tell you that the close is higher than the open, again after the pullback all we’re seeing now is closes that are higher than the open. My bet is, in the next couple days, it’s kind of hard to trade, by the way, around the holidays that’s why I don’t do much of it, instead I sift through the See’s Candies and find the good ones and just a leave the ones with the bites taken out of them for somebody else. It’s hard to trade these days but what I’d suggest doing is just using this trend line and staying long this stock, as long as it rewards you, because, you know, you look out like this, this timeframe and you can see a big long base, and now it could be just the start of a trend higher. Okay, members, over to the Strategy Session, we’re looking at financials and homebuilders, a couple retailers, and then of course RIMM. I’ve got your trade for you. Free Chart