Thursday, December 2, 2010

Do you have the time?

I've had a great discussion today with a few traders regarding a chart I posted on 12/1 for TEG (Integrys Energy Group). I typically post Daily charts, and in this case it showed a bottoming MACD & STO. It also showed that it was testing the rising 200d below. I put it on my stalk list to watch for a bounce, and set some alerts.

But wait a minute. What about the other time frames? Weekly? Monthly? That is what drove our discussion today as several traders had pinged me about what I was seeing on ALL the different time frames.

In reviewing the Weekly chart, one can see that the stock has been pulling back all month (and looks to be headed to test the rising 50d just below). That's important! On the Monthly chart, it is showing to be holding at the 8d EMA & 10d VWAP. That's also important!

Taking in to account all the time frames, what was the trade? The overwhelming view is that it continues to weaken and should test the 47 level soon, so a short was in order.

My take away from this collaboration is this: Always be open to listen, Always be willing to question yourself, Always be open to reassessment. I for one do appreciate the fact that others will question my charts, I'm not sure they realize just how helpful that is to me.

Thank you StockTwits.

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