The mind plays funny tricks on you. Last week I tweeted that $MMM was in a perfect set up for an upward explosion. I had no cash to take advantage of it. This week I have cash, the stock confirmed a break out. but pulled back , so that it is still in an entirely buyable range. I did my calculations and realized that due to it’s low risk that I would have to deploy a lot more capital than I usually do. Lets just say that it freaked me out to the point of not wanting to buy it. I had to wrestle with the emotion vs. logic. I am buying it, the logic won and here are the reasons why.
- Long term uptrend since 2011
- Current uptrend after basing started October 2014
- Consolidation December 2014 to February 2015
- Weekly Volume indicates institutional buying
- Breakout of consolidation 5 trading sessions ago
- Slight pull back after Break out
- New All time high last week.
- Earnings release not current factor.
- Initial stop 163.47
- 3% risk reward factor
Market buy on Mondays open.