If you ask a bunch of traders what is the most successful type of move you see in tape more often than not they will tell you “sector moves”. That’s when you go in more aggressively — they don’t come that often, but when they do, you have to take advantage.
NTNX first made our newsletter on June 06 (and then stayed on watch-list until breakout today) when we were looking through our MarketSmith scans. We were looking at BZUN, then decided to take a look at the sector it belonged to, and then found NTNX. Working backwards from BZUN (which had already broken out) to find next move in NTNX (which broke out today).
NTNX chart, a beauty on daily and weekly.
There is no 100% successful trade/formula. But sector moves come close. Use that to your advantage when you find leader stock moves.
And then our favorite – the anticipation to the breakout which statistically for us has more chance of working than actual breakout (even though breakout of course can garner more points when it works — different types of trades). We like to be early in these moves — base breakout here near 58.50 (posted on StockTwits 58.64 — currently up 3%) and then actually start selling daytrade portion into breakout. Swing portion we will keep unless it closes under 59.
Trading is tough and you have to work hard to always find that extra edge in strategy. It never stops. Hope that helps. See you on the streams. HCPG