Buying Apple AAPL on Breakouts to New Highs

Feb 23, 2015: 2:47 PM CST

Apple (AAPL) shares broke strongly to new all-time highs today, leaving some traders thrilled and others frustrated for missing out.

While most traders avoid buying breakouts, others see them as great opportunities to join a strong trend.

Let’s take a quick look at the current breakout as well as how shares have performed at prior breakouts.

The Daily Chart above shows two prior breakouts – October 2014 and now February 2015 – and the resulting straight-up movement that accompanied the breakout.

Keep in mind that price trends continue first from buyers buying (bulls) but also from sellers (bears) buying, but for a very different reason.

Buyers enter trades to profit from expected upside movement, but short-sellers must buy-back positions at a loss when their stop-losses are triggered.

Because many traders logically place stops above resistance levels, stop-losses… which are really just “buy” orders… can be triggered rapidly when price breaks resistance and triggers the stops.

This is the type of logic that fuels powerful trends and short-term breakout trading opportunities. Continue Reading…

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Feb 23 Flat Market Update and New Stock Scan

Feb 23, 2015: 1:44 PM CST

After a powerful short-squeezed breakout to new all-time highs, stocks traded flat to start the new week.

We’ll update our key simple levels and note trending stocks today:

The breakout above 2,100 resulted in a short-squeeze where bears (short-sellers) unwillingly helped propel the market higher as they covered their losses with stops triggered above 2,100.

Today has seen a flat or consolidation action between the highlighted pivots near 2,104 and the 2,108 level.

We’ll focus on these for any additional bullish breakout plays that may trigger above 2,110 or under 2,100.

Continue Reading…


John Carter on Simple Strategies for Consistent Account Growth

Feb 21, 2015: 2:30 AM CST

Have you seen John Carter’s newest educational video?

Entitled “Why I Trade Options for Consistent Account Growth,” John breaks down the following chart in far simpler terms:

Both images link to the “more information” and free video page, and here’s the larger image:

I admit – I was particularly interested in “not going bug-eyed” looking for stocks!

Leave it to John to add humor to an otherwise intimidating topic.

He’s specially discussing the concept of Time Decay and how this can benefit you no matter what your experience or familiarity to trading options.

Do watch the whole video to learn more from my long-time colleague and affiliate John Carter.


Continue Reading…


Feb 20 Midday Market Update and Stock Scan

Feb 20, 2015: 1:54 PM CST

Today saw a repeat event where the morning started with a quick sell-off yet buyers intervened with a recovery event that thrust the market – in a Short Squeeze – to new all time highs.

We’ll update our key simple levels and note trending stocks today:

While yesterday’s session stalled after making a weak new all time high, today’s session (so far) is seeing a powerful rally.

We’ll be monitoring the 2,100 level and now 2,104 for any signs of continuation of the Short Squeeze and financial losses from the bears which are helping propel the market higher (it’s not all bulls out there!).

Continue Reading…


Feb 19 Weak High Market Update and Daily Stock Scan

Feb 19, 2015: 1:16 PM CST

Surprisingly, the weak new price highs continued with another stab at the upper level again today, though bears were there to halt the market into resistance again.

The negative divergences still flash a big caution sign as price initially moves down away from this target.

We’ll update our key levels, highlight the divergence, and of course note trending stocks today:

After the breakout above 2,060’s rectangle resistance target, a powerful short-squeeze logically took the market to new highs into 2,100.

Today’s session saw potentially one more last-gasp rally at the new highs ahead of a reversal, but until we see price under 2,090 we’ll simply have to be cautious bulls and morph into aggressive bulls on a clean breakout higher above 2,105 or higher.

Right now, focus on the 2,095 to 2,105 simple range reference pivot points for planning trades.

Continue Reading…

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