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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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  • Look At This Stock - WEN 0 comments
    Jul 14, 2013 12:04 PM | about stocks: WEN

    By Jeff Pierce

    Technically this is a very strong chart and I like everything about the indicators, but it has 2 very big no-no's.

    1. Volume is under 500 avg daily.

    2. Today's move was due to an analyst upgrade.

    You might think that is a good thing, but when it comes to analysts I just don't trust them. They want to provide liquidity and raise the stock price so they can unload their shares. Maybe I'm being a little cynical, but I've rarely seen any upgrade provide any lasting power for stock appreciation and stay away from them like the plague. If I'm in a stock and it gets a pop due to an upgrade I'm out.

    So this is a case where I'm not really saying that this stock is going to be higher 2 months from where it is now, as it is more a lesson on what a strong chart looks like, and why I'm not touching it.

    (click to enlarge)

    twz next.

    Related Posts:

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    Stocks: WEN
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