Wednesday, July 6, 2011

How I Traded EXPE

One stock I bought in May, EXPE, has finally reached its target almost two months later.  I went long on a breakout from an x wave triangle at 25.70 with the old high as a target.  This took a bit longer than I expected but in the end waves w and y were about the same length in time.  Since the broader market is now very overextended and the target has been reached I exited the position shortly after the open today.  Of course it could go higher, but the odds are against it.

Of particular interest is the fact that the market meltdown in June did not cause a break from the expected outcome.  This is a good lesson in that when there is a clear pattern in a stock it should not be ignored.

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