Bye Bye CROX, Hello CHL

Well traders, I pulled the plug on CROX today for a nice 8% profit in about 3 weeks. The stock had a really nice run up to resistance today, then the bottom fell out, over a $2 reversal. That, as well as the MACD and STO rolling over indicated to me that it was probably time to get out...for now. Here is the chart:

CROXAs I mentioned yesterday, i was really hoping the Cup and Handle pattern would complete, and it may still, but I had some nice profits on the table and I didn't want to see them vanish due to the shorts and other profit takers, so I got out. I expect the stock to continue to fall to support at which time, I will get back in and ride up the next Bull run. You can see the STO and MACD were giving me weakness signals.

CHL is something I have been watching for some time and it finally had a decent pullback with a bounce, which is why I got in today. Here is the chart:

CHLYou'll see the nice signal the STO gives. This hit support yesterday and bounced today. This play has two distinct possibilities for profits. The first, is to hit resistance at $45 and call it a day. Even better though, this is actually forming an Ascending Triangle which by my calculations, is good for a $8-$9 run if it breaks out above the $45 resistance. So, I am playing this as a quick pop to $45 with the hopes for more. My stop-loss is 2% below yesterday's low and I am only risking 1% of my total portfolio, so the risk/reward ratio is decent to excellent should I get the second target. If I see weakness at resistance and it begins to fall, I'll sell off, wait for the next bounce and try for the breakout again.

Happy Trading!