On September 25, I posted that AGIO had had a green line break-out on above average volume. Take a look at what AGIO did on Wednesday, up 14.5% on huge volume!
Could the buyers of AGIO in late September anticipate the great news released on Tuesday evening?
Dear Dr. Wish,
When you see strong action like this, do you take a position immediately? Or you will just put it into your watchlist.
Thanks,
For every stock such as AGIO, there is another which had a similar green line breakout in the recent past and has since not regained the highs or even sold off 10-20%.
The question ‘could buyers have anticipated the great news’ over emphasizes green line breakouts and trivializes inherent risk in picking winning stocks.
Besides AGIO recently had a big down day that triggered many stops and would have been very difficult to hold through for the very momo traders such new high breakouts attract.
It depends on how I feel about the market and what else I may be holding.
My strategies work for me. I freely share them and you are free to ignore whatever does not work for you.