How do we trade a bullish stock that’s breaking out? The easiest strategy is to buy pullbacks as price swings its way higher. Let’s see an example of how to do this quickly via the recent breakout in Amazon (AMZN): For a bit of background, take a moment to read my prior update: “AMZN Bullish…
What lesson does Virgin America (VA) teach us about the popular “Bearish Rising Wedge” pattern? Let’s observe and learn: First, take a look at our educational post “Bearish and Bullish Wedge Patterns.” Second, to see a real-time example taking place, see this morning’s post “The Ross Wedge Pattern.” Third, compare those examples to what happened…
For intraday and short-term traders, the recent week has been abnormally more “gappy and trappy” than normal. What do I mean and what can we do about it? Let’s take a look at the intraday chart: Here we see the simple @ES Futures on the 15-min intraday chart. Key inflection (pivot) levels include the obvious…
It’s about time! The famous “Santa Claus Rally” occurred this holiday week. Many traders were asking “when will the rally occur?” and we have our answer mid-week. Let’s chart the Santa Claus Rally of 2015 and what factors set it up ahead of time. Here’s the Daily S&P 500: Here’s some background of what I…
Southwestern Energy (SWN) gives us a textbook example of the cycles a stock goes through from beginning to end. It’s part of the “Life Cycle” of a stock move, and we have few examples better than this one. Let’s highlight the progression from Accumulation through Realization to Distribution and back to where we started over…
So, what’s going on with WYNN Resorts? This stock has consistently appeared on our “Weak Stocks Getting Weaker” and “Intraday Strong Downtrending” Candidates for months now. The bigger picture shows us why – and we’ll start with the Monthly Chart: It’s not often we see a strong outperforming stock (as was the case during the…
How would you like to buy a stock – or ETF – that tripled in value in less than two months? Sounds impossible? It’s not – that’s exactly what triple leveraged inverse fund DWTI did recently. Shares of the ETN tripled from the $60.00 per share level to the breakout high above $180.00 today. Let’s…
Sugar’s slide continues in one of the most persistent and stable trend structures. Let’s take a look at the persistent trend as sugar prices sour to sticky new lows, trapping bulls along the way. Here’s a “Pure Trend Structure” Viewpoint of Sugar Prices (@SB): First and foremost, the entirety of Technical Analysis (visual charting price)…
Not to be outdone by Apple’s (AAPL) big gap into support yesterday, strong trending stock Disney (DIS) disappointed investors and dropped straight into a key support reference level. Let’s update our Disney (DIS) chart, learn a quick lesson, and plan the next move for this big stock. We’ll start with the Daily Chart: First, take…
We’re seeing a number of stocks build similar patterns but I wanted to highlight Harley Davidson as a great example of a stock building a base ahead of a rally on positive divergences. Let’s note the example and then plan possible targets now that buyers have revved up this stock from support. Here’s the Weekly…