As our readers know this week the #1 stock on our lists has been GS. We wrote in our newsletter last night, "No clean spot -- you just have to watch for the set-up, most likely a base and break near 165.5."
We were off by 30 cents as GS set up very well below yesterday's high of 165.2. The day-trade entry was anywhere from 165 to 165.2 as the volume surged in before 11 AM (we were in swing from 164.1 from yesterday but our day-trade add was at 10:57 AM at 165.08 av). Stop at this point on the day-trade add was 164.8 or max 164.6, that is 30 to 40 cent risk.
We wrote real-time about the basing under 165.2:
As our readers know base and break is our bread and butter day-trade strategy -- in which one can put on a large position with a relatively tight stop (on liquid stocks anyway). It's the most successful day-trade strategy that we have traded and one that we always rely on for large day-trade positions.