Swing Trade LMRA – Lumera Corp 030707

I happened to catch an episode of Jim Cramer’s Mad Money a few nights ago. He debunked Wall Street myths, and offered insights from his long tour of duty in the equities battlefield. One mantra he’s not in agreement with, is the buy and hold philosophy. I agree, but I also believe a trader needs a few core holdings based on longer time frames. LMRA – Lumera Corp. is definitely a candidate.

The stock became over a 4-bagger in October of 2006. LMRA has pulled back on the monthly chart a little over 50% the last five months. One of the main trading patterns I use has been put into play this month, and I’m buying the stock. A stop placed under the recent pivot low.

There was plenty of buying during October of 2006. Volume has decreased since then. The stop can be either a percentage stop (ex. 8% of the trade), or a dollar risked stop (ex . 3R) amount.