Today I am closing out FITB and CEMJQ from the BestonlineTrades Recommended list. The initial entry on FITB was 7.60 and the initial entry on CEMJQ was .275. So there there is 11.45% on FITB and 16.36% on CEMJQ. I just feel as though there is a better entry down the road on these two. In addition the follow through volume on FITB today is horrible, plus there is that huge gap from yesterday.
That gap will probably act as support assuming we get a retracement on FITB. Perhaps there is another entry near there somewhere.
The other ‘problem’ that FITB has is the two price swings on May 8th and 11th of 2009… one had about 100 million in volume and the other had almost 200 million in volume. Those two swings based on their volume do not look very easy to break. That was absolutely blowout volume on those swings and while we had a good move yesterday and some follow through today the volume is nowhere near what it was back then.. So that is a ‘problem’ for me and something better to watch from the sidelines. Hence the closing out of FITB today.
CEMJQ is pretty much the same story. It has a nice move yesterday but today looks like a very short term sell signal based on volume if we close under yesterday’s high. Perhaps it could pull back to the top of the triangle it broke out of, or maybe even back to the apex of the triangle.
The other reason why these two where closed out on the BestOnlineTrades Recommended List is because we are entering now that time frame of August which is not an ideal month for blockbuster volume breakouts. That is not to say they cannot happen, just that it seems less probable.
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