Have you noticed the lack of follow through recently and limited range of price movement after a set up triggers? This can be common at at stages like this. The market has moved up several days in a row and is taking a ‘rest’ for lack of a better term. Volume has slowed and price momentum has slowed. It has not pulled back but some pressure to do so can ease by the market just going sideways.
If your wondering why your stock is not moving much just look at the general averages. They are not moving much either. The market will move again and take most stocks with it (75-80% move with the market). We just have to watch for the clues as to which direction that may be.
One way to get a better chance at at stock movement beyond the limited market moves is to find a stock on its own page. Buying stocks that have relative strength (or relative weakness in the case of shorting) is a good idea anytime but especially smart at times like this where stocks movement (or Alpha as some all it) is taking place beyond the markets influence.
Also avoiding the usual volatility at opening and lack of such in the lunch doldrums period makes sense too if your looking for stocks to move in one direction.
Another thing that can help traders raise their chances is to look for different types of trades at the most logical times.A logical administration of your watch list ideas begins with the outline of your plan. Let’s say ‘Trader Joe’ has established in his plan that he’ll trade 1 or 2 intraday tactics during the first 30 minutes of the session, and then he’ll focus on swing trades after 10AM ET. This automatically requires that all of Joes attention be focused during the first 30 minutes on intraday charts, relegating the Swing Plays to be the focus later on.
Even if you decide to perform different trading activities during the same time-frame, you have to determine how to handle them in an intelligent manner. If you find you are missing trades that you took the time to find because you are too busy doing too many things this idea can help you. Lets assume you want to do both intraday trades during the first 30 minutes of the session, but also want to take any swing plays that trigger on your list. Today’s advanced trading platforms allow for a greater level of automation in your trading activity. When dealing with swings, Joe could use conditional orders which require his ultimate approval, but can be loaded in his computer before the opening, leaving him free to focus on those set ups that require minute-by-minute attention. This way, Joe can let technology work for him.
Trade with a plan.