Trade: Long ROST Apr 2010 $52.50 Calls - 10 contracts at $1.85 each
Set-up: 18-Mar-10 %R retest.
Conditions: Efficiency Ratio, Stochastics, ADX/DMI are all very bullish..
Re-Entry: none.
Exit strategy: 51.82 is violated on daily chart.
Target for profit taking: Sell entire position at 75% profit.
Stop loss: close below $51.82 (%R retest bar's low)
Time Frame: Prepared holding 3 weeks.
Where found: Stocks on the move
Emotions:
After watching a webcast with Price Headley, he said that he likes to get in ONLY on %R retests and mostly those that occur outside of the accel bands. In this case, the stock closed inside the bands, but only barely...and it rebounded nicely the day I got in.
This so far is working out realy well as it bounced right away. The stock is in a very strong group and has solid fundamentals...the uptrend has been in place and is also strong.
Daily and Hourly Chart below.
