Licking MMMy Wounds
Sometimes a technical picture just doesn't play out. It doesn't matter what the underlying indices are doing or what the economic numbers say, 3M (MMM) has just been getting stronger each day. The rising wedge formation is being invalidated on the daily chart. Bulls care little about any momentum divergences on this one. What all this means is I am wrong here. Not early, but wrong. The thesis I was trading from is now dead. This doesn't mean MMM won't ultimately head lower, but if it does it will be for some other reason than the one I traded on. For this very simple reason, it means I am wrong, so I will take my loss on the MMM puts and move on here.
...253 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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.