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Now THAT's a Head and Shoulders 11/10/20


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But it needs to break down below 3512 before it means anything. Then the conventional measured move target would be 3370-75.

At 6 AM ET, the 5 day cycle had a preliminary projection of 3450. That might stick. Or not. The 2-3 day cycle projection could be a tad lower, say 3440, or not. 

Trendline support is at 3520 now. If they break that, then we're on our way. If this holds, then it's BTFD time again.  

Hourly oscillators say that this could go either way. 

To be determined. Stay tuned for updates. 

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Zooming in on the 30 minute bars, it's easy to see that we're at a bounce point. If it holds, they need to clear 3545 to break the downtrend from yesterday's high. Then they run into likely uptrending resistance at 3560, where the battle for all the marbles would be. 

Of course, that can all be avoided if they take out 3520. Wide open spaces to 3470. 

I will no longer say, click to engorge. People are complaining. 

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Every single chart generated by my screens has an enormous gap. Some a breakaway gaps. Some are area gaps. Some look like exhaustion gaps. It's extraordinary. I can't wrap my brain around what I'm seeing. 

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I had had BA short on my chart pick list for weeks. Over the weekend I decided that it was time to cover and so indicated for Monday. By the time Monday's open came around it was too late. What had been a modest profit opened as a painful loss. Yes, I had buy signals. No, there was no sign that the stock would open 15 points above the established trading range.

Anything travel related went nuts on the open. I mean, did you see AXP. In the Nime of GAWD, Load Jaysus Powell! That stock closed at 96.69 on Friday! Yes, it had triggered buy signals on Thursday, and I had it on my day trading buy list as of Friday. 

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So this was my day trading list for Friday.

Screenshot 2020-11-10 134249.png

Check out my only short. Smart, huh? Not. 

I never leave anything open overnight. Never ever ever. This is why. I have no idea what kind of brainfart hit me when I thought that chart might be a good short. It's always contingent on the minute to minute charts intraday, but Jaysus! WTF was I thinking! I guess I was just desperate for a short, any short, to balance off the lopsided imbalance of longs. 

Obviously, there was a reason my screens were spitting out only longs. 

But don't ever let anyone tell you that the charts know all. The charts know nothing. Sometimes insiders keep the lid on tight and nobody knows shit. Charts can only identify the trend and give signs of when it MIGHT be changing. There was no advance warning on the PFE chart that shorts were about to get absolutely destroyed. There was no sign that the trend was anything but flat and narrowing. Then Monday. BOOM. 

Now it's obvious. Friday? Nope. 

Or now maybe not so obvious. By the end of the day yesterday, PFE was back in its long term range. But above the April-November "handle" of a good old William O'Neill cup and handle pattern. This is a classic buy signal, and the various oscillators and linear regression curves that I use agree. So it's bullish, and now so are the positive divergences at the last week's low. 

Click to enlarge if you want. 

pfe.png

Charts are a tool. They help with probabilities. But they are not foolproof. No way. No how. There are things that simply aren't known by enough traders to show up on the charts sometimes.  That's why risk management is so important. One of those risk management concepts is to never leave day trades open overnight. 

And if you are going to swing trade or position trade, don't even think of shorting a biotech or drug company working on a cure for COVID, or you might end up with a worse sickness. I'm an idiot for thinking that it was a worthwhile idea. It wasn't. It was a terrible idea. It sucked, and Monday proved it. 

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21 minutes ago, aussiebear said:

What do these Aussie stock charts have in common?

 

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Answer: massive bases ..  there are many more charts similar to these in the speculative sector .. could be a blast off any day 🤩

Back in the mid 60s when I first started point and figure charting, Utah Idaho Sugar, and United Asbestos had similar massive bases. 

Needless to say, they never broke out. LOLOLOL 

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3 minutes ago, DrStool said:

Back in the mid 60s when I first started point and figure charting, Utah Idaho Sugar, and United Asbestos had similar massive bases. 

Needless to say, they never broke out. LOLOLOL 

 

Well that could be the case with these guys too but the charts show the 200 ma (daily chart) is rising and the macd (weekly chart) is also heading north.  It could just be a short breakout of course but I'm thinking these dogs are about to get their day..  

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16 minutes ago, itiswhatitis said:

ZN?  Help this stoolie out.

10 year Treasury Note futures.  Those notes are TNX, quoted in the rate not the price of the Notes as ZN is, but they don't trade overnight.

The Big One is interest rates rising.  They have been falling for 38 years, give or take. The new paradigm would have it that rates will remain low forever.  I am agnostic. Could be.

https://fred.stlouisfed.org/series/DGS10   Click Max.

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