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December 12th, 2007

How to pick a strong stock

Today the Dow Jones was up over 200 points in the morning and as of right now is -62… big reversal there. The following is a 30 mins chart for the index showing the drop activity over the last 2 days.

2007-12-12 152247_NYSE~$INDU_30m

Now, I have been observing LH:NYSE (Laboratory Corp) and it almost hasn’t moved compared to my other stocks, it’s held really well. Let’s look at the 30 minutes chart for LH:
 
2007-12-12 152445_LH_30m

Note how it dropped to 72.50 but it found buyers very quickly… to me, this price action can only mean one thing: BUY. I first mentioned this stock here.

LH - Daily Chart
2007-12-12 152548_LH_1d

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This entry was posted on Wednesday, December 12th, 2007 at 3:26 pm and is filed under lessons, trading ideas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “How to pick a strong stock”

  1. TradeForGain.com » Blog Archive » Laboratory Corp (LH) breaks to the upside Says:
    December 13th, 2007 at 2:59 pm

    [...] posted yesterday about how Laboratory Corp (LH) was holding well during the last few days. Today, it not [...]

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