here’s the updated static chart on the PEET short trade idea posted in monday’s trade ideas video. hasn’t done much since then so i won’t bother with posting the chart from that video however, the fact it hasn’t done anything in the last few days since breaking down below that rising wedge pattern makes me like this trade even more. the reason for that is now we have PEET bear-flagging just below resistance (the recently broken wedge) in addition to that break-down, which in and of itself is a very bearish event. add to that the fact that PEET recently completed on of my favorite patterns, the wedge over-shoot, which from my experience, often precedes a very swift and violent reversal in the opposite direction. usually causing the wedge to break to the opposite direction of the over-throw (in this case, down). probably has to do with some kind of bull-trap, bear flush-out thing but fwiw, my track record on trading these wedge over-shoots has been pretty good in the past. works the other way too, with bullish falling wedges but i’ve seen the best results from short the rising wedge over-throws. nothing is ever 100% in trading but this one looks to have a pretty good shot at at least T2 (my current favored target) to me. note, that uptrend line marking T2 starts back on the 11/24/08 & 3/12-3/12 lows, which i believe i showed in the video.
