The back-story: As a trader, you can complain about market conditions not giving you much to look at, or you can do something about it by looking at more inputs. I have noted recently that there hasn’t been much to trade, so I used that down time to research additional news services and options scanners.
Ultimately, I bought Trade the News and Trade-Alert, additional resources on top of my Benzinga Pro and Trade Exchange.
The result: Trade Alert, the options flow-scanner, alerted me to call volume coming into Lowe’s Cos. (LOW) yesterday, right in the area I have circled on this chart.
I combined that with a double-top breakout chart pattern and bought 2,500 shares of stock at $74.07, selling those shares at $74.19 for a nice, quick and easy $300 profit.
Market lesson: Don’t chase trades; instead, spend slow times looking at potential new sources of information and testing them to see if they can reliably help you find more and better trades.
Taylor Conway is the lead day trader at PennyPro.com. He is a short-term day trader of stocks and ETFs. Prior to Monday, he had never before traded Lowe’s Cos.; at the time this article was published on RagingBull.com, he had no shares, options or open orders in LOW.