Don't Jump Into These Shares Just Yet
With quite a few stocks starting to break down, many are asking the same question: Is this a good time to grab some bargain stocks? But, instead of contemplating that, why don't we set up for some bargain entries instead? In that case, we would only consider a purchase if the technicals suggested we go through with it.
Source: Dynamic Trader
For example, in the last setup I gave you in Caterpillar
This article originally appeared on March 20, 2013, on RealMoney. To read more content like this + see inside Jim Cramer's $3 Million portfolio for FREE Click Here NOW.
The reason I've been more cautious lately has everything to do with the position of the major stock indices. Most of them are extremely extended to the upside, and they have room for some very healthy downside corrections within the larger uptrend.
As a result, the jury is currently out on the Caterpillar setup. So far, there's no trigger, and therefore no trade entry.
Earlier this week, I posted another setup with some areas to watch in Carnival
With those updates out of the way, let's set up one more stock for a possible bargain entry: Amazon
At the time of publication, Boroden had no positions in the stocks mentioned.