Wednesday, October 13, 2010

Discover Financial Services (DFS) Breaks Out

Aside from CB Richard Ellis (CBG) the other stock whose chart I was salivating over yesterday was Discover Financial Services (DFS).  I like these sort of chart formations rather than the "buy high (at any price, no matter how overbought) and sell higher" greater fool, momentum trading that now dominates.   DFS has a very similar set up, but a smaller base and more of a slowly trending up move rather than a long sideways base to break out of.  However, I wanted to see a move over recent highs i.e. over $17.20.  That did *not* happen yesterday... unfortunately it happened today, but in grand fashion and has already made a big jump.  Now I have to consider whether to chase a stock up already 5% in today's session... (I know, I know - the answer is "of course, because it can only go up from here")

Long CB Richard Ellis in fund; no personal position

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