Discover Financial Services Breaks Out

Aside from CB Richard Ellis (CBG) the other stock whose chart I was salivating over yesterday was Discover Financial Services (DFS). I like these sort of chart formations rather than the “buy high (at any price, no matter how overbought) and sell higher” greater fool, momentum trading that now dominates. DFS has a very similar set up, but a smaller base and more of a slowly trending up move rather than a long sideways base to break out of. However, I wanted to see a move over recent highs i.e. over $17.20. That did *not* happen yesterday… unfortunately it happened today, but in grand fashion and has already made a big jump. Now I have to consider whether to chase a stock up already 5% in today’s session… (I know, I know – the answer is “of course, because it can only go up from here”)

Disclosure: Long CB Richard Ellis in fund; no personal position

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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