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A Plan Can Make You Right, Even When You’re Wrong

USEC Inc (NYSE:USU) turned out to be a great lesson today. I wrote intra-day about this stock and that I thought we were seeing signs of its momentum shifting, but it ended up making a comeback as the day went on, closing well in the green at 95 cents. Recall what I wrote earlier today,

If it breaks out above 85 cents, or at least proves to me it’s not breaking down any further, I would consider this a potential re-buy,

If you’d bought it the instant it broke out above 85 cents, you were up around 10% in less than 10 minutes. The important take-aways here are that these technical price levels do matter, that the aim is to react not predict, and a good plan can turn a losing prediction into a winning reaction.

USEC Inc goes red-to-green in the final minutes.

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