As I said on MSFT, I didn’t like how it looked on 10/10 compared to SPY so I said that I may look for another ticker that has relative strength and a possible breakout which was my thinking on META and MSFT. The latest one that I’ve found is VRTX. Here’s the chart next to SPY for comparison:
It seems to mostly follow SPY at varying velocities. Since 10/3 it has been clearly stronger, but really it’s been stronger since September. I did this chart as 60-min just so that it would cover a longer period of time. I normally monitor the stocks for entry and exit using 5-min charts. The following is VRTX 5-min with my ideal plan for an entry.
Ideally, what I would want to see is for the VRTX price to come down and set a lower low, go up a bit, then go back down and set another lower low. Simultaneously, I want each of my oscillators to set two higher lows. This sets up a 3-point divergence for a higher probability of a more significant reversal in an upward direction. If I succeed in timing the bull reversal, I will then hope that VRTX will keep going until it breaks resistance points above. The first major point is the recent 10/10 high of 362.40. With the next at 363.48 from 10/9. The next and last is the all time high of 367.00 set on 7/21 which is only 1.8% away from our 10/10 closing price. If VRTX breaks out past the all time high, there may not be a lot of resistance above because there were never any trades above so the prices have little meaning to existing stockholders.