On September 25, I posted that AGIO had had a green line break-out on above average volume. Take a look at what AGIO did on Wednesday, up 14.5% on huge volume!
Could the buyers of AGIO in late September anticipate the great news released on Tuesday evening?
4 thoughts on “19th day of $QQQ short term up-trend; $AGIO still rocks”
Dear Dr. Wish,
When you see strong action like this, do you take a position immediately? Or you will just put it into your watchlist.
For every stock such as AGIO, there is another which had a similar green line breakout in the recent past and has since not regained the highs or even sold off 10-20%.
The question ‘could buyers have anticipated the great news’ over emphasizes green line breakouts and trivializes inherent risk in picking winning stocks.
Besides AGIO recently had a big down day that triggered many stops and would have been very difficult to hold through for the very momo traders such new high breakouts attract.
It depends on how I feel about the market and what else I may be holding.
My strategies work for me. I freely share them and you are free to ignore whatever does not work for you.