A Darling of a Trade Idea

A market pullback seems imminent, and there should be some increase in volatility associated with the upcoming correction. In anticipation of both, I have started looking at the weekly charts for trades that will absorb the larger-range moves and price swings. Over the last several weeks, there have been a number of good trading setups, and the long side has been profitable. It should continue once we get past the highly anticipated retrace.

Going forward, however, I don't want to be whipsawed out of a good position, so I'm looking at the larger picture. No trader expects to catch the beginning of a move or to bailout at the top, and when trading with weekly charts that gap widens. Using weekly setups, you will lag the daily entry and exit levels but you are less likely to be stopped out on a short-term fluctuation and more likely to capture a longer-term move and, ultimately, a bigger profit....347 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.