Visa Ready to Run

Saturday, June 28, 2008

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2 comments:

S R 5 said...

B - I like your Visa commentary. I am considering taking the trade as a 'swing'. Maybe just set a stop at $79, and letting it 'ride' to see if it can eclipse the $85.00 area of resistance of late.

However, I have 1 question. Do you think I should approach this trade with caution considering the overall downtrend ( as mentioned in your Sunday post) in the general market? Or, do you think some stocks will be unaffected?

Thanks,

Sonny

Wall Street Trader said...

Sonny-

I appreciate your comment as it is my one reservation along with the head and shoulders reversal pattern potentially leading to a gap fill in MA.

But, I feel I am protecting myself by not entering the trade until it triggers through $85. If the market is going to drag V down with it, the trade should not trigger and I'll never get involved. I will also obey my stop regardless of my emotions and take a $6 loss if the move fails.

Also, as we have seen with the energy and agriculture stocks, some stocks can go higher even in declining markets. V and MA have not participated in the declines either and while I'm hesitant about the market, I have to trust the pattern in the individual stock if it triggers. Then, if the market finds a bottom, V should really run.

We shall see, thank you for the comment.

Brandon

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