In my last post on April 25th I mentioned being long WEC because it was “accumulating”, this is what happened the following days.
WEC broke in an uptrend that took it past my 63.5 target to a close of 63.71 3 days later. Of course I took my 1% plus profit.
Then WEC “distributed” for five more days, still plenty of time to take profits.
After that this happened with WEC stock, it went down and now is trading below my entry point. Now, being a great company, WEC will start at some time going up again, but before that, if I had not take my profits, I would be looking for some time at losses in my brokerage account, and that is really a loss of confidence factor for a trader.
But that was then and this is now
Remember your technical analysis 101, the phases, accumulation, distribution etc., sometimes distribution is not followed by a decline, instead we thought it was distribution but really it was a new accumulation phase, well, right now for the past 4 days the market is either accumulating or distributing, who is to know?, the important thing is to react when we know.
For that I have two ideas that can be either accumulating or distributing, look for the breaks and act accordingly.
Thanks God for all the blessings