The Trade That Almost Was - Tootsie Roll (TR)
When I published our weekly newsletter a couple of hours ago, I did not mention a very ‘close second’ to our long pick for the week. I think it’s worth mentioning now, however, that Tootsie Roll Industries Inc. (TR) could have just as easily been our choice for a bullish play. Here’s why.
I didn’t show it on the chart we used for Teleflex, but the same trading system that found that stock also identified Tootsie Roll shares as a potential buy. I don’t share details of our proprietary trading systems and scans, but like I said in the newsletter, we’re looking for a very particular scenario where both volume and momentum are accelerating…. which can take weeks to identify in many cases.
My one problem with the TR chart was nagging resistance at $25.36 as well as $26.10. The stock is chipping away at the lower of the two right now, while the upper one remains untested for the time being. Had Tootsie Roll actually been at or above $26.10 earlier today, I would have suggested it then rather than talk about it here.
———————————————————————-
Sign-up for Free to Receive Future
Commentary and Trading Alerts on TR.
———————————————————————-
So why am I bringing it up at all then? This is one of those cases where I have a hunch (which I rarely trust) about something…. I have a hunch this buy signal from TR is a good one that just hasn’t gotten much traction with yet.
That being said, there was another reason I opted to not go with TR…. tomorrow’s Halloween.
Huh? Though I know for a fact that candy stocks tend to do well before and around Valentine’s day, I’ve never actually observed the phenomenon with Halloween. I wonder if that’s what’s going in with Tootsie Roll. I don’t think it is, but it costs me nothing but time to find out for sure.
In any case, I like TR right now as well; don’t be shocked if it too becomes an official pick. Be sure to sign up for the free newsletter to find out when or of we pull the trigger on TR shares.
Comments »
No comments yet.
RSS feed for comments on this post.
Leave a comment
Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>
