THERE ARE A FEW brief moments in this world when basic and fundamental change occurs right in front of one’s eyes. At the precise moment when night turns to morning, winter turns to spring and a newborn baby first opens his eyes, there’s nothing more holy or full of life.
In the market, it’s during those infrequent and all-too-fleeting moments of change when one has the best opportunity to make a buck. And although the big moves take time, there’s no denying that it’s early in the trade — before the news breaks, the herd shows up and the liquidity starts washing in — when the real gravy is made.
As usual, what drives my focus is price action. As I often suggest, the best indicator of the market is the market, and for a stock to succeed over the “long haul,” it must first begin by working in the here and now. Because trading is first and foremost an exercise in observation, the best way to catch trends early is to watch the market, not the headlines or business TV. (more…)