6/26T 10:34 MFR Strategy

Rules of the Road: MFR Strategy

Due to Michele's constant question over the last 3 years, "when you are up in the morning why don't you ever sell and book the profit." I sold ATW this morning after a strong 2.5% rally off the open. The stock is now down 2 points from the sale price. Way to go Michele!

The reasons for the sale rest in the action of the market over all. ATW had a perfect daily chart, tight consolidation, great volume action in the handle, MACD and Stocastics in perfect order, S/D rating 83 (a little low), Composite rating 98, SMR A, and a 60 min. alligator buy signal on volume. This all led to the breakout today which has occurred on volume, but the market is imploding. The averages were down 1.5%+ and by 10:00 the sell off was getting worse. So, following the Jimminy Cricket advice of Michele, I decided to book the gain.

Going forward lets watch ATW closely. For the stock to be able to breakout this morning even with the market gaping down adds to my conviction that this stock is a really good trading idea. And it also adds verification to the buy signal program I have built. Even in an awful market the signal leads to a profitable trading opportunity. We need to remain strict to this system and at the same time have the confidence to buy a big enough position to impact the net worth in a meaningful way.