Technicals: Bounce off the 50DMA

Before we get into technicals I wanted to give another stock to be aware of, and at the very least put on your watch list. CMG once again beat earnings and estimates and should move up the ladder. Don't let the share price scare you.

Today is also a big day because of the Fed meeting that is taking place today which should at the very least result in a quarter point reduction of prime. Usually the market trades in lower quieter volume on the day of a meeting until notes are revealed afterwards, so today's action could all be taking place after 2pm.

Finally, CROX does report after hours. We shall see what happens with that one.

Technicals:


Very often you find a great stock and it already broke past it's cup with handle, or double bottom chart pattern. What to do then? Buy blindly? No sir! We wait for a proper buy point. A classic technical buy point is when a winning stock touches the 50 day moving average (DMA) and bounces back up on price from that line. This sort of springboard action lets an investor know this stock has institutional support. Our #1 friend in the stock investing game. POT is one such company that recently bounced off its 50DMA.



You can use free chart services such as stockcharts.com to see what the 50DMA is.