Look at where LLY trades. It closed at $1,117, climbing hard off its May low and pressing right back up toward its highs near $1,135. That is not a stock drifting. That is a stock the buyers have taken back control of, and they are doing it with conviction. Now, the moving averages, which is one reason it gets me to write about this. The 8-day average is on top, the 21-day sits right under it, the 34-day under that, all three rising, with price living above the entire stack. When they line up in that order, every buyer from last week, last month, and back in the spring is sitting green at the same time. Nobody is trapped overhead waiting to dump shares into the next pop. The path up is clear. Then there is the squeeze, and on LLY it is on right now. A squeeze is what happens when a stock that has been moving suddenly goes quiet. The daily range tightens, the candles shrink, and the energy does not leave, it just builds up with nowhere to go yet. The chart flags it for you with a row of red dots that read squeeze on, while the momentum underneath it starts ticking higher. And this one is coiling up near the highs, which is the strongest place for it to wind up, not down in the gutter after a beating. The timing is the last piece. Lilly reports earnings on August 5. So you have a stock the market still misreads, already trending hard, stacked on the daily, winding up tight, walking right into the kind of event that tends to set these coils loose. Your Action Plan I would not be shocked to see LLY make a real move as that August earnings date gets closer, and I will be stalking it for a swing if it gives me the trigger. That is the slower side of how I trade. The other side is where it gets fun. My Fast Cash trades are the quick strikes, in and out in minutes instead of weeks, risk locked down tight before I ever click buy, and never by betting on some stock that is falling apart. I already have the next one loaded and ready to fire before the week is out. If that pace is more your speed, here is where you can ride along on Fast Cash. |
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