Not all levels are created equal.  As traders we must differentiate which levels are most important.  Less important levels require more checks for us to take positions.  Well fresh news just might be one of those checks.

VZ had fresh news today.  From Forbes.com:

Rumors have been circulating that a new Apple ( AAPL – news– people ) iPhone, equipped to operate through Verizon Communications’ ( VZ – news – people ) Verizon Wireless, could be in the works as early as this summer.

A quick look at our long term charts found 31 as a resistance level, “a level”.  On the open the question was whether to buy VZ when it looked like it would clear 31.  I did.

A stock with fresh news as significant as the above and then above a level causes me to get long.  The level plus the fresh news gives me reason to buy.  Not just the level- the level AND the fresh news.

We make decisions based on three factors: our charts, reading the tape, and intraday fundamentals.  During a classroom lecture with our new class today we talked about a disadvantage for the intraday trader in VZ.  The dopey stock is SO slow.  So we cannot really use our reading the tape skills.  This takes away a big part of our edge trading a VZ.  So we must feel more comfortable with our technical level and our fresh news (intraday fundamentals).  And this new potential deal was important enough news that I wanted to play.

VZ needs to clear 31.40 tomorrow for us to expect a move to 32.  VZ had trouble holding above 31.40 intraday.  Today we saw strength at 31.20 as well.  VZ is certainly a slow mover.  We will see how this trading opportunity unfolds.

The best part about tomorrow is the market gifting us the opportunity to get better!