Sunday, August 19, 2012

CONN, Could be a Scallop in the making.



The market this week continues to move higher leaving the media and others asking the question why? Summer rallies do occur, even while the big money is out on vacation. Isn't this rally on light volume? Yes, but price trumps volume and we(at this point in time), are the best looking house on a block that looks dilapidated.  Focus, focus, focus. Always observe how leaders are impacting the market. They help push the market higher when they rise while pushing the market down when they decline. Take a look and AAPL and GOOG charts, both look like drag race to see who can get to $700.00 first.  Believe it or not, GOOG is closer than AAPL. A by product of positive markets are the explosions in stock movement, Technically speaking Flags and Scallops. Today we will take a look at a Potential Scallop and track how it performs over the next few weeks.  The Ticker symbol is CONN.  Notice the price spike in volume on August 7th,2012.  The stock then proceeded to move sideways like a crab and on Friday August 17th, 2012, the stock closes above previous highs.  This is an optimal time to go long, using the low of $20.76 on August 14th, 2012 as the stop.  The potential distance of this stock is $27.00.  Now let volume be your guide to help push this stock higher. We will follow this one and see how this scallop turns out. For more ideas like these email: jason@themoneychart.com for a 2 week free trial of our nightly newsletter used to find the next daily movers(no credit card required).  Thank you for your time and have a great trading day. Have to mention, a must have book for the true stock market technician, titled:  Encyclopedia of Chart Patterns, 2nd edition by Thomas N. Bulkowski.    You will not regret it. (click on chart to enlarge for better viewing.)



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