Replies to post #21471 on Marketgems Earnings Trader- Trading Strong or Weak (MKTGEMS)

[jenna]

On watch for continued crapping: TJX finally continuing short as TJX breaks the rising 20 ma on 5 minute chart (which was the rising 20 this morning and shorted and shorted again) The retail sector like the building sector pulled back (the building sector had no real direction for days) this and we were waiting (as we also posted to iHUBBERs yesterday) for the breaks in the sector today and we had a lot of them! Know you sectors, know the strengths and weaknesses, know something about pending mid quarter guidance dates and earnings dates.. keep abreast of issues, economic reports and sector rotation (money flows, etc) You money you save will be your own.

[jenna]

RIMM still huge.. after selling some more incrementally still expect this "baby huey" to hit 95. Here is what we posted on RIMM today in the daily newsletter.

*enter this play cautiously. RIMM has rallied after a 5 bar "pause that refreshes" just below major support of the 20 ma Important that RIMM break the 89 area (20 dma) so it might retest the former 52 week high. 90 calls an alternative

[ed. comment] You don't buy stocks that are dropping like rocks in the midst of the tankage, you buy strong companies that back off 52 week highs and pause to refresh before continued upside. Of course we did pick up beaten down stocks today but we are skeptical and although we got some sort of bottom, the bottom might just be the same pause that refreshes however this time for increasing downside, so trade cautiously.

There are 2 kinds of 'continuation patterns' in the "pause that refreshes" There is the continuation of DOWNSIDE after the pause for accelerated downside after the stock takes a breather (possibly the likes of KLAC, SNDK, ELX, QLGC, and that group) and the "pause that refreshes" for upside for a stock that has soared after the earnings report, continually proved it could recover upside after "bull flag" pullbacks and CONFIRMS our pattern in real time and not just prognostications.