WFM (Whole Foods Market Inc) is too overbought for my comfort level after a very extended, near-vertical rally from the bottom of this 1.5+ year basing pattern to the top of the trading range. As such, my preference for a long entry will either be a breakout above the top of the base IF the stock consolidates here for a while -OR- possibly on a backtest of the pattern from above, if WFM breaks out soon, ideally after a period of consolidation to alleviate the overbought conditions. Daily & weekly charts below. As I often say, overbought can [...]
An overview of some of the unofficial swing trade ideas posted in the Trading Room (9 longs & 1 short). The following trade candidates are discussed in this order: MNKD, TEVA, WFM, FCEL, GPRO, AMKR, IONS, CARA, STNG & PIOI.
As I'm now able to focus my efforts on the long overdue process of cleaning up the Trade Ideas category, I am doing so in phases starting with Short Trade Ideas (Setups and Active Trades). I did a once-over of all the charts and placed one of three symbols next to each trade; "OK" means those trades still look objective and will be left on as Active Trades for now, to be updated asap. A "?" means that I need to study the charts in more detail before deciding to leave the trade or setup listed on the site as it [...]
The WFM short hit the first target (T1) today for an 11% gain from entry. I'd probably put about a 50/50 chance on whether or not we get a decent bounce before breaking below that level but my preference is to ride out any bounce and hold out for T2 before booking any profits on this trade. If we do bounce, any move higher would likely be contained by the 40 week ema which is also the 200 day ema, as that level had done an excellent job of defining the bulk of the previous bull market in WFM from Nov [...]
In reviewing the short trade ideas, I noticed that the WFM short has been active since just before I started adding the actual price levels to the targets (previous charts just showed a horizontal line at the target level). Therefore, I have added the suggested target levels to this updated chart. WFM was originally posted as a short entry all the way back on Aug 15th when I had stated that the entry might prove to be premature since prices were not far enough below the trendline to clearly signal and entry. Prices did retract back inside the wedge that same [...]
like an almost "too common" theme, WFM was triggered as an active short on what proved to be a false breakdown about 4 weeks ago. the fact that we had some many well defined trendlines and technical patterns breakdown that week, only to see prices quickly reverse & close the day back inside/above those patterns/trendlines tells me that whether or not those false breakdowns were purposefully engineered or not... the end result is the same: the move higher in the last few weeks was largely fueled by short-covering, as many shorts undoubtedly entered positions when all these recent patterns were triggered [...]
here some updates to the active short trades. any active shorts not listed here still look fine technically but feel free to email me if you have any specific questions on a trade. [...]