"But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your forefathers, as it is today."
Got into a new trade today, check out the chart:
I entered this for the following reasons:
1. This is a developing "rounding bottom" pattern. This pattern is when a stock pulls back and makes a shallow looking "U". If this pattern confirms, then it will go back up to the point where it started pulling back and then should break out higher from that point. Check out this chart showing the next level of resistance above as a target:
2. Check out the close - on an uptick in volume, the closing price was up in the zone where the sellers had been recently pushing prices down. This means the buyers are getting stronger.
3. The stock is also reacting to the 50 day moving average and getting a boost up off it.
4. The MACD 2 lines have been going lower, but recently they started going sideways and now look ready to start going up. At the same time, the MACD histogram has been getting more bullish.
5. The financial sector (which NYB is a part of) had a very positive day today. They've been lagging the rest of the markets, but today got a nice boost up. It's my belief that big money is now starting to really go back into this sector. Here's a chart showing the different sectors - the financial sector is represented by XLF, which is the lower right chart - look at the green box - it represents this week's price action. Quite positive.
Lots of reasons to enter. I have a definitive edge and I'm blessed to have found this trade.
I bought the April 18 Call for $1.15. I've got plenty of time for this thing to move. I'll have to determine when to take profits, but I do have 2 targets - the immediate resistance above and the next level above that if this pattern works out for me. I'll just play this one day by day.
Okay George Bailey - get your bank cooking on this stock, we need the price to rise...
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