We often in our daily Game Plans like to capitalize the word CLOSE. Countless time we have seen pivot points taken out or traded very close to on an intraday basis but fail to do so on a CLOSING basis. This often has dramatic implications. Of course not all the time but we have been around long enough to know it is better to get out of the way and exit the position. If the original trigger is taken out again on a CLOSING basis it can always be purchased again. Below are two examples of stocks trading near a specific trigger during the day but not finishing above by the end of the day. Not surprisingly they weaken in the days and weeks following.

In our Friday 10/16 Game Plan we looked at HTZ. The stock looked poised to take out its 200 day SMA and the round 20 number but an earnings miss by chief rival on 11/3 which knocked the stock down 11.4% put an abrupt end to that. It came very close to taking out the trigger, traded as high as 20.05 on 11/2, but has since flopped. Last week is slipped 3.5% and this week has slumped more than 13% already in almost double average active volume. Below is exactly how is was written in our Game Plan.

Stocks that can be bought as they take out their 200 day SMAs are HTZ. HTZ is a lagging car rental play down 22% YTD and 5% over last one year period and 24% off recent 52 week highs. It has dropped 4 consecutive times after reporting earnings by 3.6, .1, 2.6 and 1.7% on 8/11, 4/28, 3/25 and 1/6 (to be fair HTZ jumped 8.5% day after 8/11 and rose 14% for that week). The round 20 handle has been a line in the sand with good support their last October-November, this February before falling below the week ending 6/26 where it lost almost 7%. The 20 number is now resistance as it reversed there on 7/17 and it touched there last Friday. The 200 day SMA aligns with the 20 handle and enter with a buy stop above 20.20. HTZ has been below the 200 day SMA for 54 weeks now.

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