The discussion to start IBD Live this morning was Webster and three “steps” for reacting to major levels (the 200 in this case):
- Move above the 200
- Close above the 200
- Low above the 200
It can happen all at once. However, Webster then wants to see 3 lows above the resistance level (the 200) before he goes all in. That doesn’t mean he’s not buying small amounts of what’s working (he loves TWAPs) and selling some things that are not working. Justin likes to watch the 5 minute chart and see what happens. Scott St Clair sold off immediately to only 15% positions. He likes to take the “gift” of the gap up. Both Justin and Mike stressed closing positions of what isn’t working such as SPOT this morning.
We’ll see.
Lakedog