Short Squeeze Continues Market Update and Stock Scan April 20

Apr 20, 2016: 1:49 PM CST

The pattern aggressive dip-buying continued as bears once again lost money via an extended short-squeeze.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

In the 5-min micro-chart above we see three intervention reversals off steep pullbacks as the trend rose.

We’re seeing literal domination by the bulls/buyers against the sellers as money aggressively and desperately floods into the equity market, blowing over all evidence and logic to the contrary.

This is our Alternate Thesis we’ve been discussing in the membership and we’re seeing the textbook “larger move in the opposite direction” when price surprises the majority of traders.

Receive daily updates, planning, and education by joining the Afraid to Trade Premium Membership.

Continue Reading…

Comments Off

The Oops Gap Down in Netflix NFLX

Apr 19, 2016: 10:18 AM CST

Despite better than expected earnings per share and revenue, Netflix (NFLX) stock collapsed overnight into this morning with an “Oops” Breakout Pattern.

Let’s chart our “Oops Breakout” and plot the current levels on which to focus in NFLX:

We’ll see it clearer in the next chart but on the indicator-overlay chart, we see Netflix rallying with negative divergences into resistance at $112.00 per share.

It’s the 61.8% Fibonacci Retracement and price target as highlighted.

Buyers were unable to generate enthusiasm and break price higher above resistance.

Yesterday’s gap-down and bearish day on an otherwise short-squeezed bullish market was a sign that not all is well with this high-flying popular stock.

Ultimately earnings were strong but future guidance was weak and investors responded by liquidating positions.

The result was a gap-down and instant shatter under $100.00 and the 38.2% level also at $99.50.

Price is now gapping and trading down in a sudden breakout/breakdown into Open Air under $100.00.

Here’s a clearer “price-only” picture to plan: Continue Reading…

1 Comment

Bullish Domination Emini Level and Trading Update April 19

Apr 19, 2016: 10:01 AM CST

The Intervention Pattern Continues with additional upside price action on a gap-up this morning.

Like yesterday, let’s start with the recurring price pattern and then plan our trading levels:

Here’s the Intervention Pattern:

First, price gaps down strongly overnight or off the open.

Second, buyers rush to put on positions, stabilizing the market and buying aggressively into the selling.

Third and finally, buyers overcome sellers and sellers become buyers as a forced short-squeeze propels price higher.

The Intervention Pattern occurred at least six times from March 24th (and more before then).

That’s what we’re seeing right now – a similar gap-down, an intervention by buyers, and a forced short-squeeze.

Love it or hate it, it’s reality and we must adapt to reality – price patterns help us see the hidden supply/demand relationships.

Let’s move now from the Intervention Pattern to the levels and Tuesday’s price action chart: Continue Reading…

Comments Off

April 18 Intervention Bullish Break Market Update and Stock Scan

Apr 18, 2016: 2:17 PM CST

Buyers rushed in to halt a down-gap and sell-off this morning, resulting in a strong short-squeezed breakout.

Let’s update our levels for the S&P 500 Index and note the big trending stocks today:

On the lower frame chart, we can see a “Flag” or AB=CD Price Pattern completing just shy of the full 2,000 target.

A gap-down occurred into the lower connecting trendline and the 2,075 support pivot.

From there, buyers intervened with aggressive buying, enough to trigger a breakout beyond 2,082 then 2,088 to extend an ongoing short-squeeze (bears buying-back to cover losing positions).

At this point we’re focusing on the alternate thesis breakout toward 2,000 which is occurring now.

Receive daily updates, planning, and education by joining the Afraid to Trade Premium Membership.

Continue Reading…

Comments Off

Intervention Short Squeezes and Emini Level Update April 18

Apr 18, 2016: 11:30 AM CST

Let’s look very closely at a recent blatant pattern of intervention during the current market rally that occurred once again this morning.

We’ll start with the recurring price pattern and then plan our trading levels for the day:

Here’s the Intervention Pattern:

First, price gaps down strongly overnight or off the open.

Second, buyers rush to put on positions, stabilizing the market and buying aggressively into the selling.

Third and finally, buyers overcome sellers and sellers become buyers as a forced short-squeeze propels price higher.

The Intervention Pattern occurred at least six times from March 24th (and more before then).

That’s what we’re seeing right now – a similar gap-down, an intervention by buyers, and a forced short-squeeze.

Love it or hate it, it’s reality and we must adapt to reality – price patterns help us see the hidden supply/demand relationships.

Let’s move now from the Intervention Pattern to the levels and today’s price action chart: Continue Reading…

1 Comment
 Page 3 of 737 « 1  2  3  4  5 » ...  Last »