The bears are saying, “Don’t taze me, bro!” Here’s your trade on Taser (TASR) (May 17, 2016)
A real real easy one today. The only stock I could really find that seemed worth buying, other than maybe a few energy stocks here and there, is Taser ( NASDAQ:TASR ). They got an upgrade, I think it was Morgan Stanley, but it doesn’t really matter. The new price target is $25.00, which is this prior resistance level here. From where this stock traded, it’s a 30 percent move, which is a pretty nice one. Now, of that 30-percent move the first 7 percent has already been made. But the way this traded, high volume, really, really crappy day in the market, the stock traded lower for a minute and then kept going. Then in the afternoon, when did this peak? Wow! Right at the top of the hour, magical moment. By the way, check the rest of the averages. Check the S&P, the Dow, etcetera, etcetera, you see what they did at 2:00. So this started pulling back, but it didn’t get very far and now the stock is moving again, it moved up into the close.
What I’d suggest doing is, take some stock here. If it pulls back, like maybe tomorrow is another weak day in the market, if it pulls back just watch and see how it trades around the 200-day moving average. If it starts trading below here or so, then I don’t think you want to be long. We’ve seen these breakouts that have been fakeouts, but for now this sure looks like a good one. So once you’re long, if the stock starts trading above $21.00, then this is a stock that you want to buy and then institute a trailing stop. Because you always want to protect your profits. And the most vulnerable part of the trade, in my view anyway, is when you first enter the trade, because now you’re playing with your own money; you don’t have any profits to kind of cushion you.
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