[Haugaard]

RTX breaking out from a two year base with high volume. Looking for a pullback to around breakout level before entering at entrypoint B.

[isatrader]

RTX breaking out from a two year base with high volume. Looking for a pullback to around breakout level before entering at entrypoint B.

Yep, it looks like the Stage 2A breakout was back around 180 on the earnings week when it was still below the 2018 highs. So you'd be looking for the B entry point, or next significant pullback or consolidation.

[pcabc]

A few European stocks
HSE, NXU & WSO1:
           

[Haugaard]

Currently considering shorting the danish insurance company Tryg A/S. 

- Breaking down from a double top formation.
- Under 30w MA. 
- No major support until 110. 
- Considering setting buy-stop order just above 200. 

Since insurance companies are dependent on healthy financial markets and having as few claims as possible, the fundamental side of an insurance company, doesn't look to good right now.

- Markets are abysmal, which would leave the insurance companies with big losses.
- Corona can cause claims in the following areas: Travel-, health- and life insurance.

I'd like some inputs. If you have an opinion, let me know!

   

[isatrader]

I'd like some inputs. If you have an opinion, let me know!

In terms of the method. I'd recommend re-reading Chapter 7 in the book, and particularly from page 229, which gives you some concrete examples and strategies to use.

[Haugaard]

I'd like some inputs. If you have an opinion, let me know!

In terms of the method. I'd recommend re-reading Chapter 7 in the book, and particularly from page 229, which gives you some concrete examples and strategies to use.

Hi Isatrader,

I just reread the chapter. So what you're saying is, i should try to find a stock that as gained a substantial advance over the past year, is in stage 3 with flat MA that is starting to decline and trended sideways for a few weeks? 

Back to OG chart, so what you don't like about this one is?:
- Not bought at breakdown level.
- Not enough advance over the past year.
- Too far ahead in an advance?

Many thanks.

[isatrader]

I just reread the chapter. So what you're saying is, i should try to find a stock that as gained a substantial advance over the past year, is in stage 3 with flat MA that is starting to decline and trended sideways for a few weeks? 

Back to OG chart, so what you don't like about this one is?:
- Not bought at breakdown level.
- Not enough advance over the past year.
- Too far ahead in an advance?

The same rules apply as in a Stage 2 breakout, but in reverse. So instead of considering overhead resistance for example, you want to be looking at where there is support that might cause an issue. As you want to make sure that there's room for a big move, and ideally it should be underperforming the market index, and in a weak sector etc.

[Haugaard]

I just reread the chapter. So what you're saying is, i should try to find a stock that as gained a substantial advance over the past year, is in stage 3 with flat MA that is starting to decline and trended sideways for a few weeks? 

Back to OG chart, so what you don't like about this one is?:
- Not bought at breakdown level.
- Not enough advance over the past year.
- Too far ahead in an advance?

The same rules apply as in a Stage 2 breakout, but in reverse. So instead of considering overhead resistance for example, you want to be looking at where there is support that might cause an issue. As you want to make sure that there's room for a big move, and ideally it should be underperforming the market index, and in a weak sector etc.

In kinda confused right now. Page 229 clearly says, that one should be on the look out for a stock that has had a substantial advance over the past year. Surely it can't advance significantly, while at the same time underperforming the market index, and be in a weak sector?