MW Update & New Short Setup

MW was added as an "anticipatory" short trade on April 3rd while the stock was trading at 33.10.  The reason for the short entry was in anticipation of what might later prove to be the formation of a second right shoulder of a very large Complex Head & Shoulders Pattern [...]


May 31, 2013 3:52pm|Categories: Completed Trades - Short|Tags: |Comments Off on MW Update & New Short Setup

Shorting MW

MW has been listed as a short setup since December as I've been watching this potential Head & Shoulders pattern form.  The pattern has now firmed up to be what looks like a very symmetrical Complex Head & Shoulders Pattern (two shoulders on each side).  The previous trigger was listed as a break below the neckline but at this point, I believe the R/R is very good for a short here near the top of the 2nd right shoulder with a stop just above the recent highs .  Therefore, MW will be added as an active short here around the 33 [...]

Apr 3, 2013 10:02am|Categories: Completed Trades - Short|Tags: |Comments Off on Shorting MW

Russell 2000 video overview

I've received a few comments lately regarding the strength of the Russell 2000 (small caps) so I made this video to share my thoughts on the index.  I also covered the charts on the following components of that index in order to get a better feel on where the index itself is likely to go from here.  Many of these stocks are either active or recently completed trades on the site so for those who wish to skip forward in the video, here's a list of the charts in the order discussed: $RUT weekly, $RUT daily, $RUT 60 min, WNR, GCO, [...]

Dec 21, 2012 12:43pm|Categories: Equity Market Analysis|Tags: , , , , , , , , , , , , , , , , , , , , , , |Comments Off on Russell 2000 video overview

MW short setup

MW is setting up in what appears to be the final stages of a nice looking head & shoulders topping pattern.  H&S patterns are probably one of the most widely recognized patterns in technical analysis yet most traders don't bother to scrub the pattern for the volume criteria.  From my experience, not confirming the volume patterns increases the rate of failure substantially.  Ideally, you want to see impulsive selling on increased volume off both the head and the right shoulder, which is clearly the case with MW (note that large gap down on the formation of the head).  Although the price [...]

Dec 6, 2012 6:29pm|Categories: Uncategorized|Tags: |Comments Off on MW short setup