Looking for a perfect entry? I can’t help you. But I CAN help you on a pretty good entry on a strong, uptrending stock. Check out CME Group (CME). (March 15, 2018)
CME
I want to look at CME ( NASDAQ: CME ) today. This is a real quick video. The uptrend is obvious, no real mystery there both in the daily and the weekly chart. You can see this is a stock you want to buy, right? It tends to not give us a lot of great buying opportunities but it does give us some good ones; this is one of them right here. They don’t report earnings for over a month. The stock, right now, is about 4 percent above the 50-day moving average, which has marked the line in the sand for lord knows how many little pullbacks here.
My suggestion is pretty simple. This is a stock you can buy. If it happens to pull back a bit tomorrow, if you can get it 162.00ish, 163.00, all the better; but even buying the stock here at 165.00 works. You buy it; you put a stop a little bit below the 50-day moving average so you have got your risk defined. Then as the stock and if the stock starts to move higher you can start increasing your position. Ideally, you get more consolidation here for a while, tightening up and then finally, Boom! A big blastoff here, but we are getting ahead of ourselves.
What I am saying here is you can buy this stock here. Keep your stop 5 percent below where it is. You are in a really good trending stock on a pretty decent entry. Again, not the best entry but there aren’t that many stocks right now. In fact, I can’t find one that gives you the absolute ideal picture perfect entry but this is close enough. It works for me, I hope it works for you.
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