Oct 172014
 
IWM 120 min Oct 17th

IWM 120 min Oct 17th

Here are a few suggested stop levels for the IWM short trade. The first stop would be just above that shaded box which encompasses the 109.80 horizontal resistance as well as a Fib cluster, the 38.2% & 50% retracement levels of the two prior reaction highs. The next stop, stop 2 at 112.42 lies just above the 112.20 horizontal resistance and another tight Fib cluster (50% & 61.8%) with the upper-most suggested stop above 144.55, which comes in around the 61.8% retracement of the move down from the July 1st peak in the $RUT/IWM. Which stop(s) one uses would be based on their preferred downside target(s) in the $RUT/IWM (i.e.- the lower your price target, the higher your stop).

I had mocked up a daily chart of IWM with some potential target areas last night but either inadvertently saved it to the wrong watch-list or didn’t save it at all. If I can’t find it I’ll work up another chart today but as of now, based on my interpretation of the weekly chart, I think a move down to the 875 level on the $RUT (about a 20% drop from current levels) is certainly a possibility in the coming months at this time. Of course, if that proves to be the case, we would almost certainly experience some very quick counter-trend rallies along the way.

Oct 162014
 
WLT 60 min Oct 16th

WLT 60 min Oct 16th

The WLT (Walter Energy Inc) aggressive Long Trade Setup that was posted yesterday went on to break out above the 60 minute bullish falling wedge pattern (triggering an entry) and just hit the first target, T1 at 1.99, for a very quick 10% profit. T2 at 2.59 is my preferred target at this time but as always, consider booking partial or full profits and/or raising your stops, depending on your own unique trading plan. Updated 60 minute chart of WLT (another coal stock):

Oct 162014
 
ANR 60 min Oct 16th

ANR 60 min Oct 16th

The ANR aggressive long trade setup that was posted yesterday triggered an entry on a break above 2.04 today. Official targets have been added just below the same resistance levels shown on yesterday’s 60 minute chart. T1 is the sole target at this time but additional targets may be added. The suggested stop if targeting T1 would be just below the 2.04 former resistance, now support level. Updated 60 minute chart below. I also wanted to reiterate that ANR, like many of the recently mentioned US coal stocks, has the potential to morph into a much longer-term, bottom play, should we get sufficient evidence of a bottom in these stocks. Therefore, an aggressive longer-term trader or investor could certainly start scaling in here with a stop below the recent lows or depending on their average cost basis as they continue to scale in (my preference would be to only continue scaling in if the recent lows are not violated).

Oct 162014
 
$RUT daily Oct 16th

$RUT daily Oct 16th

Yesterday, the $RUT (Russell 2000 Small Cap Index) hit the second downside target (T2 at 1040) that has been listed on the daily chart under the Live Charts page for months now. As if most often the case, the typical reaction (bounce and/or consolidation) immediately ensued. That bounce is now approaching the base of the double-top pattern that I’ve also been highlighting on that same chart for months now as well. In fact, the base of that double-top patten was the first downside target which was just recent hit & then taken out a few sessions later, triggering a breakdown of that pattern which actually projects down to the 960 area, a drop of about 11% from current levels if reached.

With the bottom of that double-top pattern at the 1080-1082 level & the $RUT trading at 1081 as I type, a short entry here on the $RUT (IWM) with the appropriate stops somewhat would have to be consider a very objective entry with a very favorable R/R (risk-to-reward ratio. As such, IWM will be added as an Active Short Trade here around the 107.50 level.

I will follow up with the specific IWM targets soon but just wanted to get this trade idea out asap in case we do get the expected reversal off of this backtest of the 1080-1082ish resistance level. For those preferring to use one of the leveraged ETFs as a proxy for an $RUT short (TWM, TZA, etc…), keep in mind that this trade is intended as a multi-week swing trade and therefore, at most I would consider using TWM (2x short $RUT) as the decay on the leveraged ETFs, especially the 3x like TZA, will almost certain impact the returns if held for more than just a few days.

The live, annotated version of the $RUT daily chart can be accessed via the Live Chart Page or the Live Charts Links widget box on the right-hand sidebar of the home page.

Oct 162014
 
SAVE daily Oct 16th

SAVE daily Oct 16th

The SAVE (Spirit Airlines) short trade hit the first profit target (T1 at 53.38) for a 23.3% gain on Monday and has so far traded around that level every day this week.

This is one of many recent examples of why multiple price targets are used as reactions (i.e.- a bounce or consolidation) are common upon the initial tag of each price target. Consider booking partial or full profits and/or lowering your stops if holding out for T2 (48.27), which is remains the final target on this trade.

Oct 162014
 
PNC daily Oct 16th

PNC daily Oct 16th

The PNC (PNC Financial Services Group) short trade hit T1 yesterday which was the sole official profit target at 78.20. I had also listed a second target zone which was likely to be extended as the final target but as I had not made that target official before T1 was hit, I will have to consider this trade completed. For those still short, PNC has a better chance of reaching that second target zone now that the intermediate-term trend is bearish. Consider booking partial or full profits and/or lowering stops if still long. PNC will now be removed from the Active Trades category without any additional updates.

click here to view the live, daily chart of PNC

Oct 162014
 
KATE daily Oct 15th

KATE daily Oct 15th

KATE (Kate Spade & Co.) hit the final target, T2 at 27.65, on Sept 26th for a 28.9% profit. I had thought I had updated this one earlier but just noticed it still listed as an Active Short Trade while updating the trade ideas today. As always, traders should have limit orders in place to close positions upon their preferred profit targets unless actively monitoring those positions at all times. For anyone still in the trade, KATE is now down 35% since the short entry at 38.91 at the open on July 30th so at least consider lowering and/or trailing stops at this point if still short. However, as T2 was listed as the final target, KATE will now be moved to the Completed Trades category.

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