I’m still surprised with how quickly Dryships (DRYS) surged from $5.00 to $100.00 but even more impressed with the even faster speed it collapsed from $100.00 back to $5.00. Dryships (DRYS) serves as a perfect example of a euphoria pattern shows up on a stock’s chart when fear/greed (in this case extreme versions of both)…
The talk of the trading community this week is the impossible, raging rally in Dry Ships (DRYS). We leave the reason aside and follow the price. Let’s update our chart from the original post I made for you on November 14th. Before looking at today’s “what happened next” chart above, take a moment to read…
Many traders love reversal patterns but so many traders get trapped in false reversals in real time. Here’s the @DX (US Dollar Index) showing a lesson in real-time reversal patterns as they develop: First, we have a strong rally up away from the $95.00 @DX level toward $99.00 without a major pullback. Momentum – as…
As a trader, we need to celebrate those moments where things actually work as expected. It’s even better when the expected outcome happens on such a popular stock like Netflix (NFLX). Let’s chart the original triangle and follow the footsteps of price into this week’s bullish breakout surge: First, take a moment to review my…
After a large rally – or lengthy decline like we’re seeing in WYNN Resorts – you can build a Fibonacci Retracement Grid of Confluence for the stock. The goal is to identify short-term and longer-term upside bounce (rally/retracement) targets. We start with a potential reversal low and then “build” Fibonacci Retracements from the high and…
If you’re a new trader interested in Reversal Strategies, SHLD has a powerful lesson example for you. Let’s study the setup and plot the trade as price continues its expected, tradable reversal off the lows. Sears Holding (SHLD) developed support a the $11.00 per share level. The FIRST thing you should do in planning a…
I love spotting and trading a “Three Push” Pattern on a Daily Chart. Why? It’s an easy-to-see pattern that develops over time and gives a high probability of a big win with minimal risk. I posted last week about the “Three Push Pattern in Lululemon LULU” and the outcome. Here’s another great example for you…
The “Three Push” Pattern is one of my absolute favorite price patterns to play. Lululemon (LULU) – fresh off a bearish earnings surprise – gives us the most recent example of this larger pattern and teh powerful reversals that can “surprise” traders not aware of the bearish reversal pattern. Let’s see it and study it:…
Parabolic Arc, textbook Elliott third wave, to-the-penny 50% Fibonacci. These are just some of the factors at work for Novatel Wireless (MIFI) on the recent surge from $1.00 to $4.00 – a stellar move. Let’s peel back the price and learn some lessons while we plan the next possible swing. I’m highlighting the earlier simple…
After holding at the highs, Stocks reversed lower today from their lofty heights. Crude Oil did too but in less-spectacular fashion. Let’s view the rally up and the reversal down – complete with mini-Elliott Waves and Negative Divergences. Advanced traders can track cycles or swings in price. We look for a specific pattern where a…