I previously discussed Fifth Third Bank in that I was thinking of taking a position soon. Today, I took a position in Fifth Third Bank long 1,000 shares. I made this decision based on it breaking out of its base on the weekly. The pivot point was 11.20 and it also had an inverted head and shoulders on the daily. This bank might try to run up some more soon if earnings are better than anticipated. The earnings will be announced January 21. Sometimes it might even be better to consult monthly charts to find flat channels and long bases. When the stock breaks out of these it can be explosive. Thats why I use daily, weekly, and monthly charts. The longer the time period a trend comprises the more important the trend. This will allow for you to catch the primary and secondary trends without being concerned over minor flucations.
However, for day traders there is no substitute for intraday especially for scalpers. Scalpers will be in the stock for seconds to make a few pennies a share. This strategy isn't easy but Paul Rotter became pretty succesful at it. He was able to make $65-78 million a year for 10 years in a row scalping. He is the world's most succesful scalping trader. He is known as the "Eurex Flipper."
Furthermore, if Fifth Third doesn't recycle below the 11.20 pivot point, and volume continues to pick up above the 30-day sma, this will help move Fifth Third higher. Also, 2.79% of the float is short. The float is the amount of shares that are trading on the market publicily. This trade should be held as long as it can continue to break out of consolidation regions without declining below the prior base. All charts will be posted tomorrow on Fifth Third and Century Aluminum Co. I'm currently experiencing java issues and can't post any charts. I assure you this will be fixed by tomorrow. Lastly, I will discuss how the market is shaping up with market indices, including the Dow, Nasdaq, NYSE Composite, etc.
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