Radical Reversal for Dry Ships DRYS with Bullish Surge

Nov 14, 2016: 3:50 PM CST

It’s not often you see a stock go from beneath $5.00 to $40.00 in three days.

However, that’s precisely what happened post-Election for Dry Ships (DRYS).

How’d it happen and where is it going from here?  Let’s learn a few lessons and get prepared:

As chart-based traders, we’re often agnostic to the intricate specifics of what a company does.

We prefer to identify trends and trade retracements or patterns that develop within these trends.

Dry Ships (DRYS) gives us an example to highlight a BREAKOUT from a lengthy consolidation and radical REVERSAL of a lengthy downtrend.

We’ll see the bigger picture on the Daily Chart in a moment, but for now focus on the initial November 10th breakout – on high volume and momentum – and the numerous continuity patterns (bull flags or triangle breakouts) that occurred as price traded higher and higher.

We believe that stocks which are strong tend to get stronger, not weaker and DRYS gives us a perfect example of this “strong getting stronger” concept developing rapidly.

Here’s the bigger picture from the Daily Chart: Continue Reading…

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Range Trading at the Emini Highs November 14

Nov 14, 2016: 12:53 PM CST

Our divergences at the high continue to stall the market just ahead of a key breakout.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Negative momentum and Breadth (Market Internal) divergences INTO this resistance give us pause.

Ultimately price reversed down away from the 2,170 target (discussed with members last night).

We’re seeing three retracement swings down away from 2,170 toward the 2,150 level.

At this moment, we’re seeing another bounce. Use 2,150 and 2,170 as short-term pivots in the new range.

Want these levels and additional strategy planning in advance each evening?

Get these levels in advance with in-depth planning and trading opportunities by joining the Daily Membership.

Continue Reading…

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Ten Year Treasuries Return to Higher Timeframe Trendline

Nov 11, 2016: 2:57 PM CST

After Tuesday’s US Election, we’ve seen rapid movement in the intermarket landscape.

Let’s focus on the sharp “Return to Trendline” movement for US Treasuries:

As I’ve been highlighting to weekly members, Bond Prices remain in a rising parallel trend channel.

With the negative divergences in the summer at the upper trendline, we’ve been expecting a larger reversal swing lower toward the rising lower trendline near 127.

After the election, we see price at this lower target sooner than expected.

We’re now watching the play away from the 127 pivot. Continue Reading…

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Another Divergence Reversal at the Emini Highs Nov 11

Nov 11, 2016: 12:13 PM CST

A key pattern – with visual negative divergences – is forming at the retest highs.

So far we’re playing today like yesterday.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Negative momentum and Breadth (Market Internal) divergences INTO this resistance area gave us pause.

Ultimately price reversed down away from the 2,170 target (discussed with members last night).

We’re seeing now TWO retracement swings down away from 2,170 toward the 2,150 level.

At this moment, we’re seeing another bounce.  Use 2,150 and 2,170 as short-term pivots.

Look to play toward 2,140 if beneath 2,150 for a steeper pullback should it occur.

Want these levels and additional strategy planning in advance each evening?

Get these levels in advance with in-depth planning and trading opportunities by joining the Daily Membership.

Continue Reading…

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Emini Divergent Reversal at the Highs Nov 10

Nov 10, 2016: 12:13 PM CST

Additional bullish price action after the election sent us to our prior high target into 2,170.

Here’s today’s updated Emini (@ES) trading levels for your trades:

Negative momentum and Breadth (Market Internal) divergences INTO this resistance area gave us pause.

Ultimately price reversed down away from the 2,170 target (discussed with members last night) and we’re monitoring the ongoing intraday action.

It’s a fast-moving market so watch your positions closely and adjust to the volatility.

Want these levels and additional strategy planning in advance each evening?

Get these levels in advance with in-depth planning and trading opportunities by joining the Daily Membership.

Continue Reading…

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