Thursday, January 19, 2012

Bounced out of Under Armor

UAUnfortunately, I got bounced out of Under Armor because of a news article by Jefferies making a comment about fear that UA was not going to make or meet earnings expectation next week. So prior to the market opening, UA fell below my stop loss and executed just a bit lower than my risk point. You can read my original write below this post with the original chart and compare it to the bounced out chart. Sometimes you win and sometimes you lose. This time technicals lost to NEWS. I will keep UA on my radar but will not touch it again no matter what until after earnings.



The write below was from January 12th

UA_thumb1Last stock I want to talk about is Under Armor. I have been watching this stock for a long time and today I pulled the trigger and put it in my portfolio. UA at first glance appears to be in a down trend, but there are a lot of indicators telling a different story. On the Weekly chart not shown, the 10 and 30 day moving average never crossed indicating a sell. On the daily chart the most important signs is the higher pivot low and todays price closed above the last pivot high. So now we are guaranteed and higher pivot high somewhere down the road. Now if we supplement price indicators with our oscillators, we have several confirmation to help us decide to buy. The PSAR fired a buy the first day of the trading year. The CMO fired off on 1/9/12 and the MACD fired off 12/29/11 in December. The Stochastic fired on 1/4/12. So after todays break above the last high, I decided enough was enough and took a chance with UA. The risk for me on UA on a single transaction is 4.28%, but my total risk on the entire investment portfolio is just .68%. I think that is worth the risk.

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