Setting a stop beneath yesterday’s intraday low was an excellent tactic to lock in some gains on GMCR. (December 06, 2012)
GMCR
I’m Dan Fitzpatrick at StockMarketMentor.com on Thursday the 6th of December. One last thing on the Green Mountain ( $GMCR Green Mountain Coffee Roasters Inc ) and then I’m out of here; we’ve got to move on to greener pastures. Look at the videos for the last couple days if you haven’t already. Look at the ones, I kind of walked you through this one looking for a blow off top. You know I said this one yesterday, just didn’t seem like it was it. I mean it looked like it ,but there were a few issues as far as, you know, I’d want to see volume a little bit higher, maybe the spurt intraday, I think this is, if I recall correctly, this is what I was showing, this is the range yesterday and what I didn’t see, which was enough to really convince me is, I didn’t see a really sharp move up and then a sharp move down; instead it was a fairly sharp move here but then just kind of a drift and then it closed near the low, near the low of the range. And my suggestion was, that you keep a stop, you let these things run as long as possible but you use the last intraday low as your reference for a stop. So if you’ve done that, you know, you’re really outed above $40.00, which was a really nice trade. So now what you want to do is nothing, if you’re still in this trade then you need to be watching my videos more often, maybe join Stock Market Mentor because this is a kind of thing that we manage against, we manage risk, we don’t trade we manage risk. And to members, especially the newer ones, we don’t trade, we manage risk. This was a pure risk management trade here. If you look at the weekly chart you can really see what was happening with Green Mountain ( $GMCR Green Mountain Coffee Roasters Inc ); again a big move to the up side. Volume last week here, this week; so you can see, just about every indicator you look at, you’re going to see a stock that needs to come lower and that’s what it’s doing now. I’m not going to belabor the point, what I’m suggesting is that you go ahead and watch Green Mountain ( $GMCR Green Mountain Coffee Roasters Inc ) if you want, I’ll look to trade it; maybe in a week or two or three or four or never. Bottom line is, the move has been made, the move has been capitalized on and now the path of least resistance is down. If you feel like shorting it, that’s fine too, you may be a little bit late or you can ride a call spread or something like that, to trade it to the downside with options; but that’s a for another venue. Okay, members get over to the Strategy Session; Thursday’s tend to be a little shorter than usual, but I’ve still got quite a few stocks for you to look at. Free Chart