Get Ready for Round 2 with Winn Dixie

Winn Dixie (WINN) is poised for take off again.  After rocketing from 6.50 to 9.50 very quickly and then pulling back, it appears that buying order flow is driving it back towards the highs.  I'm still long this one from before but I am probably going to add to it.  Below is a breakdown of the trade.

 As you can see from the above chart, the weekly chart just had a crossover on the 20 and 50 week moving averages...possibly the beginning of an uptrend.  Furthermore, the Volatility stops are still in "buy" mode.  I'll be targeting an add between 8.50 and 8.00 a share.  I'll set an initial wide stop at 7.30 and then trail the stop with the volatility stops.  We'll see what happens.  The market overall is starting to look stronger via market breadth and sentiment indicators.  This stock could really take off if buying hits the general market.  As always, time and price will tell.

TLT

WINNing

I couldn't help it...a Charlie Sheen reference is just to good to pass up.  But seriously, $WINN is exhibiting some interesting trading and it looks like it's ready to explode to the upside.  Check out the daily chart:

WINN is setting the stage for an accumulation break out.  After long sideways consolidations, these types of moves can be rather large.  Personally, I've taken out options positions for this trade as the options on WINN seem a little cheap...probably because of the lack of volatility lately.  The confirm dots in the chart are just a trend following indicator that I've been playing with that seems to have some promise.  It's basically just an updated version of the turtle trading break out method with a couple of small twists.  I'm finding that combining different trend following models that base their signals on different variables offers good trades.

I'm pretty sure Charlie S. would give WINN the Warlock seal of approval (okay, no more Charlie Sheen references).

Have a good weekend.

TLT