All About Trends'  Instablog

The markets are pushing new highs again today.  So why is MELI, which has been a stock that's been leading the market higher, lower today?  Because as you can see by the chart below it's at trend channel resistance.  It's also a perfect example of why we say "It's a market of stocks and not a stock market."

Success in today's stock market isn't about buying and holding stocks forever.  Instead it's having a game plan and executing that plan.  And today that plan is simple:

Buy support and sell resistance or buy the dips and sell the rips.

In a strong uptrending market, the name of the game is to "Let Them Come To You" in the form of looking for stocks that have pulled back off of their highs to an area of support.  And when looking at charts, you should be asking yourself, "What Do I Need To See To Take A Trade?"

So for us to take a trade in MELI, we need to see it pullback in an orderly fashion to trend channel support (the bottom green line) -- just like it did in late October.  For now, we wait and let it come to us.

This is how to buy stocks in an uptrending market.  Don't chase buses, instead let stocks come to you.

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