Today's game, SW and EFX/UN

After yesterday's LNR selling I put some effort into adding another position to remain at the four minimum. None of my picks were an ideal trade so I looked at my list of uptrenders to see if any would make a decent addition even without falling precisely in my CTP plan.

Two came up, EFX/UN Enerflex and SW Sierra Wireless.

EFX I placed an order on and missed my price so I let it go for another day. Nothing fancy, just an attempt to snag an already in process uptrend.

SW is approaching a critical point where resistance, trend and moving averages are approaching a confluence...should be interesting. According to the trend it would have been a good buy May 28th but the price seems trapped in a triangle.

I circled the "zone". I traded this one prior to setting CTP in motion and got stung for my full loss allowance in April, you can guess which day that happened on...look for the big red day. I did investigate this company in the past and I do feel they would be a good long term holding.... but that doesn't matter.

Here is a tighter shot of the "triangle":

Interestingly this produces a better image.

The blue lower trend boundary, the red horizontal resistance line, all the waving moving averages (ignore the gold bands) and the price are all headed, roughly, for the $17.50 mark shortly. The important thing to watch for is what the price may do at the apex as it will go somewhere other than horizontal. I anticipate a steep rise in price but I am willing to wait for this resolution first as the uptrend really has not been confirmed yet. I might buy if the price convincingly hits $18.

Had I been following CTP all along, or at least since December I would be up $15.50 per share...somewhere north of 85% realized gains...so I would just buy today(actually on the 28th) and hope for the jump. If it reverses and I loose I would not be too concerned as my gains are already well into the green and it would amount to $0.60 to $1 per share loss. As I am starting this one without any gains already in my pocket for this stock I will play it very conservative as this trade does not really fit my plan...it just looks like a good setup.

I am treating each stock as it's own entity as it would be too easy to squander yesterday's $2.40 per share gain on this trade...I will keep it tracked with LNR for future trades for that stock. I'll expand on the thinking behind that another time.

JD.