Bulls Awaken As Global Stimulus Plans Takes Hold

The stock market traded higher overnight. Should we be bullish and buy today's open?

Yes. But we need to buy at the right time.

In today's episode of Stocks for Breakfast, I discuss how to know exactly how far your stocks should trade higher today.

Every trade we make needs to balance risk and potential reward. We need to justify the risk, in exchange for the reward. That means our stocks need to hold the higher open, and have "room to go"

So today's trading game plan calls for buying stocks, IF certain criteria are met. The first 60 minutes today I want the hourly candlestick to be green and I want the 15 minute chart to be well-offered.

If that's not the case, I need to see a short term reversal such as a swing low.

Best case scenario for me today I want my stocks to open higher, push higher off the open, hold above the open, then give me an entry.

How to picks stocks to trade -- >

I use AAPL stock chart as an example today to show you how to use the ATR, average true range, to determine profit potential.

To clarify today's game plan, I am waiting to buy a pullback this morning. If the hourly candlesticks are red, and well-offered. That trade is off the table and I will consider shorting as a day trade (no overnights)

Have a great day!
Leave a comment if you have any questions.

Pete