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 Profit From a January Rally

Signet Jewelers

2012 was a strong year for shares of mid-cap jewelry chain Signet Jewelers (SIG - Get Report). Shares of the company have rallied around 21.5% in the last 12 months, and now they look primed to go even higher thanks to a trend channel that's constricting this stock.

Signet started in a trend channel at the start of July, bouncing in between trendline resistance to the upside and trendline support acting as a floor below shares. In total, SIG has managed to bounce off of support no less than seven times since the middle of the summer -- an impressive track record that indicates that there's significant demand for shares right at that uptrend line. Now, with SIG sitting right above support, we've got a good buying opportunity for shares.

When you're looking to buy a stock that's in an uptrending channel, the ideal entry point comes on a bounce off of support. That's because it the spot where your potential reward (the distance from the stock's current price to trendline resistance) is the highest, and risk (the distance from the stock's current price to trendline support) is the lowest.

If shares break support, then the channel is broken and it's time to exit. I'd recommend keeping a protective stop just below that price level.
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
SNA $140.01 0.00%
SIG $98.63 0.00%
V $70.42 0.00%
VMW $45.01 0.00%
WTW $11.05 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs