There is very little overhead supply at new high. Consolidation phase is over and this is a good opportunity to add to your portfolio.
There are SEVEN PILLARS OF STOCK MARKET PRACTICE necessary for success.
1. Determine whether the market is in a "bear" or "bull" trend.
Then determine further whether it is a major, intermediate, or minor trend.
TRADE WITH THE TREND!
2. Determine which groups of stocks are the strongest.
TRADE IN STRONG GROUPS FOR ADVANCE! TRADE IN WEAK GROUPS FOR DECLINE!
3. Select the strongest stocks in these particular groups.
TRADE IN STRONG STOCKS FOR ADVANCE! TRADE IN WEAK STOCKS FOR DECLINE!
4. BUY ONLY ON REACTIONS-not on advances!
SELL AND SHORT ONLY ON ADVANCES-not on declines!
5. Place a mental or (if you do not watch the tape) actual stop-loss order of two or three points on your trades.
BE AT ALL TIMES PROTECTED AGAINST POSSIBLE LOSSES!
CLOSE OUT WHEN TRADE GOES AGAINST YOU.
6. Protect your profits by stop-loss orders. Let your profits grow when you see your stocks advancing.
HOLD OUT FOR LARGER PROFITS!
7. Do not hesitate to take your profits; you may be able to re-buy the same stock at lower prices.
SELL WHEN YOU THINK THE MARKET IS DUE FOR A REACTION!
SELL AT THE TOP * * * NOT AT THE BOTTOM
BUY AT THE BOTTOM NOT AT THE TOP
WX Stock rallied on VERY HIGH VOLUME and will most likely consolidate at low volume in a trading range above these prices.