It is often said that “dumb money” trades the open and “smart money” trades the CLOSE. Like they say it is not where you start, but where you finish. The stock market is no different and below are a couple examples which illustrate that point. Anyone who would like a full copy of Tuesdays Game Plan email me at chartsmarterblog@gmail.com.
EROS is an Indian consumer play which is now higher by 52% YTD and 107% over the last one year period. Earnings have been mixed with gains of 2.9 and 6.3% on 6/10 and 11/12 and losses of 2.5 and 1.8% on 8/18 and 2/17. The stock is trying to digest a strong 10 of 11 week winning streak between weeks ending 5/15-7/24 where it more than doubled top to bottom. The last 2 weeks are up 12% but prior to that was a 4 week losing streak which lost more than 20%. There have been some big weekly gains this year of 15.4, 17 and 19.7% the weeks ending 6/5, 7/10 and 7/24. EROS is now just below its 50 day SMA and enter with a buy stop above 32.30 and add to above a double bottom trigger of 34.54.