Wednesday, February 17, 2010

A Stock I Love

Visa has always been one of my favorite companies. If I were managing large amounts of money it would certainly be on my buy list as it is currently setting up in a beautiful base. This along with all the numerous other bullish setups/breakouts I am currently seeing are giving me the impression that the markets are poised to move higher. However, if I start seeing these setups fail en mass including the three breakouts in CREE, SANM, and DSW that I highlighted yesterday then I would become worried especially since a lot of stocks are breaking out of third and fourth stage bases. In the meantime, however, one just has to go with the flow and that is up, up, up!

Below is a chart of Visa with the yellow line suggesting a move through $90.00 into new all time highs as a buy price. I would put my stop loss for a breakout in Visa 8% below my purchase price or below the low of the current consolidation.

Try to hold until it becomes apparent that the markets/the stock itself are going to reverse from an intermediate uptrend to and intermediate downtrend or hold for a profit three times as large as the risk or 24% - 30%.

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