Beware of Buying Over Extended Stocks

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Amazing EXTENDED AND NOWHERE NEAR ANY SORT OF LONG ENTRY

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As I looked at tons of names I can't count how many are extended here offering no low risk POH entry. But I also look at them and say wow even if the market were to get slammed hard all that slam would do to these names is set them up for nice longside entries (that is your emotionally centering statement over the next few months folks).

Think about that, here we are in the next month or two going to be approaching the next episode of Washington gone wild yet even if they slam the market into it all that is going to do to the most extended names is bring them back down to more realistic levels.  That's when we'll want to pounce for a trade at least. Names with structure that is.

Look at Visa below for example (MA shows this too).

  

So our point to this is really what is there really to fear in a market slam? Nothing to a market opportunist.  We mean that is  IF your perception is in the right place, as in no fear and not listening to the doom and gloomers out there just trading what we see much like we did with the cliff deal , those who missed that?  rest assured you'll get another chance at a similar event coming soon to a theater near you to test who you are again. BUT that could easily be weeks away. In the meantime let em pullback and we'll keep picking them off.

Overall this is just an example to show you how extended a lot of names are. Also look at SODA,QIHU,GS,MA,CRM, LMCA, BCEI just to name a few. Buy the dips and sell the rips and we just ripped. Bring on the dips. 

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