The major market averages finally broke out of their tight, sideways consolidation on higher volume. Janet Yellen will begin her confirmation hearings to succeed Ben Bernanke as the next Federal Reserve chief. Yellen has been very pro quantitative easing which is naturally bullish for the markets and may have contributed to the days positive action.
Taser International (TASR) did not trade enough volume to qualify as a pocket pivot yesterday, but it did manage to pull off a short trendline breakout on above-average volume. We first reported on TASR on October 30 when it had a buyable gap up on strong earnings. It has since undercut its gap up low by around 3%, so you may have partially cut your position around that level since we suggest some porosity, typically 2-3%, though this can be lower or higher depending on the volatility of the stock. TASR is quite volatile and trading in the teens so a porosity of 3-4% is not unreasonable. Of course, if this is beyond your risk tolerance level, you might buy only a fraction of your normal position or not trade it at all.
This morning futures are mixed, but members should stay alert for real-time reports as leading and emerging leading stocks become actionable.
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