Recently we wrote about Natural Gas ETF UGAZ on the ATP Free Blog site as a sample of buying the dip or using the “cup with handle” dip buying for profits. We have discussed waiting for a pullback to the 30-31 ranges before on UGAZ and then going long for a reversal.
Within 48 hours the dip came into the buy range, and within a few days UGAZ ran to the $38 range for as much as a 24% reversal trade gain. Even now some 9 days later UGAZ trades around $36 per share for nice gains.
Another sample we had for subscribers was on November 7th in RIMM stock. We advised waiting for a pullback from 9.15 ranges to the 8.50-8.70 ranges. When the pullback came this is what we sent to subscribers:
ATP Active Trade Alert
RIMM- 8.64 has fallen as projected in to the 8.50-8.75 swing entry buy ranges.
This is an active trade meaning 1-5 days likely and a stop should be placed at 4-6% below your entry and NO LOWER than 8.00 for aggressive partners who take the trade.
Now on November 20th, about two weeks later, Research in Motion (RIMM) is trading near $10.00 per share. The stock fell to 8.14 during the market correction which was above the $8.00 stop and above a 6% stop loss range from entry. Partners who remained long would now be sitting on gains of 14%.