Here is your next move on Acacia (ACIA) (August 18, 2016)
ACIA
Lets look at Acacia ( NASDAQ:ACIA ) today, and here’s why: I want to use Acacia ( NASDAQ:ACIA ) as kind of an example here. Stocks aren’t supposed to close outside the lower Bollinger Bands very often, like 90, 91 percent of the time they’re supposed to be contained. This has broken that rule in many, many ways. You can see all of these closes at or above the upper Bollinger Band, this is what strong stocks do, but this is ridiculous. Over the last seven days this stock has traded up 64 percent. That’s a HUGE move in a very short period of time. You could take some profits there and you would regret doing that, because, “Oh my gosh, the stock moved up another 13 percent. I shouldn’t have sold.”
That’s fine, but I’m telling you now, you’ve got to take some off the table. You can so it one of two ways: Sell half of your position, that’s one way to do it. Number 2, disregard everything I said and say, “Fitzpartrick’s a knucklehead. I’ll sell when it gets to 150.00.” And you may wind up being right, you absolutely might, this stock has kind of defied gravity. The old saying, ‘What goes up must come down,’ I think is actually true, we just don’t know when. So it’s fine to say, “Oh, this has gone too far,” sure, and it has. But when is it going to pull back? We don’t know. But I’ll tell you this: After this kind of a breakout on this kind of volume, you get a real light volume, low volume selling day, and now we’re getting even more volume coming in here. This, to me, looks more and more like a climax, like a buying climax. It’s got a low float. It’s obviously in demand (Hello), but you’ve got to let go of it sometime.
This is what I would suggest: You just look at the 15-minute chart, you’ve had a heck of a run. By the way, you can’t buy it, somebody is going to buy it tomorrow, just don’t let it be you. But this was the low here at $97.00, right? That was clear back here, so you have to have a better way to trade this stock. You can’t even set this as your low. But on a 15-minute chart here’s what you can do: You can set this as your low. And I’ll tell you, this is the 50-period moving average, I’m just too lazy to change it, it doesn’t really mean anything. But if you look at this as the last low, you see this stock stair stepping higher.
This is a pretty long sideways drift for a while, this was a little pullback. The stock pulls back to a new low here, relative to this 15-minute chart, that’s when you want to take some off the table, so just put a stop in. That way you are not calling the top. You are not saying, “This stock has gone up enough. I’m going to sell it!” You’re not doing that. Instead you’re saying, “I’m going to keep kind of a snug stop here. A logical stop based on the lows here, a little bit below that. Not at the lows but based a little below that. I’m going to keep a stop a little bit below this level and then I will only sell when the stock tells me that it’s right to sell. Until that time, I’ve got no decision to make. I’ve made my decision as far as where to put the stop, and I’m done.”
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