A volatility squeeze that’s working. (September 20, 2012)
CMCSA
Good evening. Dan here at StockMarketMentor.com on Thursday, September 20th. Today I want to talk about Comcast ( $CMCSA Comcast Corporation ); this is a stock that’s been in our Buzzin’ Dozen portfolio for a while; it’s doing really well, so I want to go over this and see if maybe there’s still a trade. First of all, if you’re long, no reason to sell, the stocks doing what you wanted it to do, which is go to all-time highs. We like it when stocks do that because they tend to just keep doing it. You can see on the weekly chart we had a little pullback, now we’re drifting higher. Volume, okay, not that great, but it’s working. Now we look at the daily chart and we can see perhaps why volume wasn’t that high, because we’ve had a gentle little pullback and that’s what happens when buying pressure just kind of dries up like after a big move to the upside, buying pressure just kind of dries up the stock drifts down and then; Boom! We’re off to the races again. So here, what do we do with Comcast ( $CMCSA Comcast Corporation ) now? Okay, you can see the Bollinger Bands are pushing away from each other, that’s volatility increasing, it’s running higher, I think this stock, bottom line is this, I think it has further to go, but you’ve got to be careful because over the last two days we’ve had two high volume days. Now that’s a good thing it’s not a bad thing. I don’t see any kind of a quote, “Blow off top,” or anything towards a big exhaustion of buyers. But what I do you mean is, we’ve pushed the price up over two days, and by the way not a lot, let’s see how much it’s gone up; well, 3 percent, not a big move in a couple days, but it’s a move; so if you watch the stock I think you could still buy some right here right now, as long as you’ve got this weekly timeframe. On a daily basis, if you’re a real fast trader or you’re just like really active, or something, fine, go ahead and buy it and keep a stop just below today’s intraday low, but if you’re looking to scale in or get you know, kind of to get on board with this, I would suggest buying a little bit right now take, a small position, maybe a quarter, maybe even 20 percent of the position that you normally take, and then hope that the stock pulls back and that’s when you get the rest. Also, listen, there’s a lot of you that are in Option Market Mentor, you’ve taken advantage of that $7.77 trial for 30 days, which is refundable, you can get your bucks back. I welcome you, we’re going to have a lot of fun, it’s been a lot of hard work for me today and Gary and Josh too; it’s like we’re having a big open house so we’ve got to make sure all the guests get their drinks. Anyway, if you are not a member or if you haven’t checked that out, please do so; it’s a lot of fun and I want to see you there. I’m Dan Fitzpatrick and I’ll see you next time. Free Chart