As intraday trader we seek catalysts. By catalysts I mean something that will now make our stock move. And when we find a catalyst we then expect our stock to move immediately. But sometimes we need to let our stock breathe. Let’s discuss.

There was an epic battle at 42 yesterday in STT. A secondary was announced at 39. Buyers came packing some heat at 42. Sellers were ready with their hand grenades. There was a battle. Who would prevail?

Time passed and a few on our desk moved on. There was a whole lot of buying and selling going on at 42 but no moving. There was a fake breakdown to 41.60. There were a few fake breakouts to 42.20. But really the stock wasn’t moving. And now it was 10:30PM, time for a Bella protein bar.

Steve watched STT like a hawk. He continued to watch every tick. And after an hour of non movement, after a huge battle, the market started to get stronger. STT ticked differently to 42.15. The buyers were in control. The buyers were lifting offers more uniformly than the first hour. Could this be it?

Steve called out STT. I bought some more near 42.15. Steve was loaded not willing to sell until he saw a significant seller. And STT finally got good. And sometimes this is trading. Stocks don’t go up when you want them to go up. They go up when they want to go up.

Steve had started a core near 41.90. And he let his stock breathe. He gave STT time to trade higher.

We saw the same thing today in TGT at 44. TGT failed to hold above 44 on multiple attempts. Finally a bid popped its head in there above 44. TGT did not explode immediately. It lingered. It leaked down towards 44. But finally it did go.

To our developing traders I say,”Patience young fellas.” Sometimes you’ve got to let your stock breathe.

Best of luck with your trading! Don’t forget to follow us on twitter.