This column was originally published on RealMoney on July 20 at 12:31 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.Profits can be hard to come by these days, but I really can't complain. I've been doing quite well since I sat myself down in May and keyed in a few adjustments to my trading strategies. My strategy has been to take profits out of the market as they come, and the frequency with which I've had to do that since adjusting my strategies has been a pleasant surprise indeed. My efforts have convinced me there's money to be made in 2006, as long as you keep an open mind and are willing to try out new things. To this end, let's review five market strategies that are working well despite world tensions, interest rates and general malaise. Hopefully these ideas will help you rediscover your profitability in this difficult environment.
The measured move target for this breakout lies in the upper $80s. But trading any tobacco stock should come with an investor health warning. There are still so many legal actions in the courts that unfavorable news could come at any time and undermine the rally. But that's an acceptable risk, considering what's happening to the rest of the market.
Last week , I showed a few of the advantages of trading off weekly charts instead of daily ones. The favorable response to this column suggests that folks are taking the advice seriously. But how do you get started on this noble enterprise, and how often must you track key developments in your weekly stocks? Start your weekly watch list with components of the S&P 500 and Nasdaq 100. These liquid issues show reliable long-term patterns, and you can follow the news flow on them very easily. Then take the time to peek at longer-term charts in all new issues that attract your interest. Add these when something good catches your eye. Weekly charts are designed for folks who have real lives outside the financial markets. A weekend review of news and price developments should be sufficient to manage positions and find new opportunities. But also add a free alert service that sends you key headlines on your stocks during the trading week. This will let you respond quickly if something unexpected happens.