Friday, July 22, 2011

DIS, CGNX, XLU - 3 Potential Tradable Patterns Developing

DIS - Cup and handle developing. Fundamentally not much to boost this stock and there is a lot of overhead resistance. I see a price target in the $42 range. Might be a good short term trade. Ultimately its going to take much better quarterly earnings to churn through and get back on top.

CGNX - This is an ugly inverse head and shoulders pattern developing. The stock is bounce off the 50ma with regularity. I'm not extremely hopeful for a powerful breakout based on its decreasing volume but the the lack of overhead resistance might make a breakout possible if the market is strong.

XLU - This ETF trades off the utility sector. Today's action bounced off resistance. Looking for a breakout. I've included the sector's index which this ETF trades from.

IBB - Biotech ETF Inverted Head & Shoulders Pattern Developing

A break through the 110 level could mean a rise to a price target around 118-120 level.

LCC - US Airways Head and Shoulder Pattern Complete

I posted [THIS SETUP] 2 weeks ago anticipating a breakthrough to the downside. I wish I would have followed my own analysis and shorted this. Its down over 15%.

Tuesday, July 19, 2011

INPH - Interphase Breakout Chart Pattern

I am long this stock today based on a symmetrical triangle pattern breakout. I calculated the technical target to be around 5.90. Earnings are in a week.


I am long this stock today. I see about 11% to the target.

Thursday, July 14, 2011

$SCO - Short Crude Oil

A sharp spike in the dollar today helped lower oil prices so I am short crude oil right now. Oil is traded in dollars. The more the dollar is worth, the less dollars it takes to buy a barrel of oil, thus the price of oil goes down.

Dollar Charts
5 minute chart

Daily chart - Note the support and resistance

$SCO Ultra short oil ETF, bounced off support today with the spike in the dollar.

Update on my calls

$NVDA  Continues to fall. May see $12 so I was wrong on this call.

$LCC  Continues to move lower, I'm going to wait to see it test the neckline again. Earning are coming up as well making it a risky trade to short.

$IMAX  Has tested the neckline of the head and shoulders pattern. I see this as a good opportunity to short.

Tuesday, July 12, 2011


NVDA has been going down for a while. I see it hitting a technical low from its head and shoulder pattern. This could mean its due for an oversold bounce. Keeping an eye on it.

Saturday, July 9, 2011


Short Setup - Head & shoulders pattern. I'm going to watch this and see what happens. If the price goes below the neckline I may short this. Oil prices will be a factor. Higher oil prices could push the stock lower.


Short Setup. I am short based on this setup.

Monday, July 4, 2011

SPX & VIX Inverse Relationship

The VIX is the "fear index". When the market is strong, fear is low. When the market is tanking, fear is high. There is an inverse relationship between the two. The VIX has double bottomed. I think this could signal a reversal in the SPX.