JOYG - Like I Was Saying...

Well Traders, this was EXACTLY what I was waiting for! Remember yesterday I mentioned I was waiting for JOYG to break above the horizontal resistance line with heavy volume. Ta da! There it is! So, I entered a partial position today, and we'll see what happens tomorrow. If it continues to head up, I'll buy a little more. If it heads back down towards new support, I'll buy even more. Then, I'll wait for a "bounce" off support and fill an entire position in the stock.

You'll notice that I have two other diagonal resistance lines to contend with. Should the stock break the first one, I have a nice $10-$12 potential until the second resistance line. First though, I need to break the first one.

***

VLO is another stock in which I hold a position in. I am mentioning this because it had a MAJOR breakout today. The stock FINALLY broke over its "Double Top" on heavy volume. here is the 3 month chart:You'll notice the stock broke BOTH the horizontal and diagonal resistance lines. Why is that significant? Take a look at the 9 month chart:See what I see? That's right...NOTHING. Nothing until $62.50-$63.00. By that I mean there is no resistance. This stock could make some pretty heavy headway here. Couple that with an AP article in Yahoo Finance about a potential stock buyback by the company of close to 15-20%, which is up from an estimated 5% buyback, an upgrade of the stock price target from $79 to $82 and crude hitting $60 a barrel, and you had the makings of a wonderful day if you own the stock. If VLO sniffs anywhere near $80, this guy will be getting his family some serious Christmas gifts!

***
Keep It Simple!

Sometimes I get pretty involved in searching for the "perfect play" in what amounts to "missing the forest for the trees." INVESTools does a pretty awesome job of finding those "trees" that lead to profits. Here is a picture of Suntech (STP). I have highlighted the "peaks" in green boxes, and the "bottoms" in red boxes. You'll notice that the second "peak" was higher than the previous one, and so was the second "bottom." Technical traders recognize this as potentially being the start of a Bullish trend. When the INVESTools chart fired off 3 "Green Arrows" highlighted in 3 gray circles, that is an "official" entry signal. Here is the chart:
If I had entered this play then, I am supposed to exit when the stock breaks its trend, or fires off three "Red Arrows." Well, according to the INVESTools method, I would still be riding this gravy train of profits.

Happy Trading!