This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Trades to Take as the Market Returns to Normal

RPM International

Meanwhile, specialty chemical manufacturer RPM International (RPM - Get Report) has had a less volatile 2012. Shares of the Medina, Ohio-based firm have been making an orderly ascent for most of the year, but this week's pullback in shares provides an optimal entry opportunity for investors looking to buy shares.

>>8 Stocks With Big Dividends, Steady Returns

When I say "orderly," I mean that RPM has been trading within a well-defined trend channel. That channel has helped to identify the likely price action in this stock for most of 2012, and in particular, it's helped to identify the last five swing lows in shares. With RPM coming down to test trend line support, buyers have a chance to jump in when risk is low.

It's important to wait for the bounce off of trend line support before actually buying this stock. Clearly, the best time to buy a stock that's in an uptrending channel comes at support - it's the place where shares have the furthest to move back up to resistance (the top of the channel) and where they have the least distance to move through support. Waiting for a bounce ensures that RPM can still catch a bid at that trend line.

Since a breakdown below support means that the channel is broken, support is also a logical place to put a stop below to ensure minimal risk.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ATO $74.09 1.74%
DDR $18.04 1.75%
FSLR $51.78 -2.02%
SHLD $14.72 -4.97%
RPM $49.96 -0.68%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs