the little engine that could

Market is still completely resilient with every dip getting bought. It reminds me of the story of the little engine that could.. chugging along slowly but surely. Greece fears show up at some point everyday, but the little engine still somehow finds a way to creep back and chug back to highs. No real powerful market breakouts but still getting the job done. Until the train runs out of steam, we keep doing what we have been doing so well past 2 months: daytrading, with a couple swings only on the most perfect setups.

We added on two swingtrades in the boom room today, and I have great expectations for both of them. Here is a look at their charts and where we entered them.

The first swingtrade that we added on today was ZOLT. Zolt broke out really hard on earnings on huge volume two weeks ago. Since that breakout the stock has pulled back 3 bucks on much lighter sell volume. The stock was flagging and continued to get tighter and tigher the last few days, alerting us that it ws getting ready for a move. We added this thing in the room in the 12.5’s today. I have targets of 14 on this bad boy. The stock closed at 12.86 today.

The second stock that we put on for a swingtrade today was MPEL.. the stock brokeout right before the close today and we added it at 12.25 for a swingtrade. The volume on the breakout was really good, so I expect this one to run tomorrow. The 12.25 spot was crucial because the stock tapped that area 3 times before finally breaking. The more times a stock taps an area and fails, the more powerful the breakout will be once it finally breaks.