I said the other day that it sometimes feels like I only trade tech stocks, but that’s not the case. In an effort to diversify what I post here, here’s a trade on UTX, a stock that — whilst it has ‘technology’ in the company name — is not a tech stock in the strict sense.
As we can see from the chart, it doesn’t matter what the industry sector is (aerospace in this case), the patterns and setups work exactly the same. I don’t care if UTX sells microchips, aircraft, or ice cream. All I want to know is where those little red and green bars go.
And on Monday they went down. Fast. We love momentum, so when the pattern set up I was ready to dive in with a short and ride it until it faltered.
It faltered on the next bar. Momentum reversed, a battle raged between buyers and sellers, and I was happy to cover my position and let them have at it. A nice four figure profit in about five minutes.