One tip I think is very important to remember is that signals can fake you out. Once you know this you can look for ways to use it to your advantage. For example, we looked at AT&T (T) a couple weeks ago. (Read that article here) It had a MACD bullish crossover on its chart which is usually a solid buy signal. (check out more about MACD crossovers here) But it faked out and started to fall again and just didn’t pop. We wrote about how important it is to look for confirmation with any signal you see. In this case a solid move above the 10 or 50 Day moving averages would be the sign. AT&T just didn’t have the horsepower to make that happen.

But the signal wasn’t completely wrong, it could have just been early. If we take a look at an updated chart we see that T is consolidating and starting to creep up.

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We are still looking for that solid break above the 10 day moving average as trigger and the longer it goes sideways the more likely the next move will be big.

Trading is definitely a hunt with much time and energy spent being still and quiet, waiting for the best time to strike. I like to add stocks with patterns like this to my watch list. With so many tickers to keep an eye on finding one with this much potential to move makes it easier. Like having that honey pot fishing hole where you are confident you’ll get a bite.

Keep learning and trade wisely,

John Boyer


Market Wealth Daily