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 day, with prices continuing to move higher, but the trade was giving some room and once again was updated as a more solid breakdown and entry about a month later.
It’s taken a while but the trade is now solidly profitable and just missed hitting T1 by a hair yesterday. Keep in mind that the WFM trade, like most shorts trades entered around the Sept ’12 market top, were suggested to be covered or hedged the day the market bottomed on Nov 16th when I flipped from a short to a long bias, suggesting to re-enter the short trades at higher levels as “the odds are (were) too small to warrant staying aggressively short and risk giving back profits on a bounce, which could be sharp.” and that “I do favor the lower targets over time but would prefer to re-enter short once the R/R is more favorable.” (That post can be viewed here). Therefore, a lot of angst from riding out the strong market rally from Nov 16th – Feb 19th would have been avoided by all but longer-term traders who decided to ride out the bounce in WFM and a lot of the other pre-Nov ’12 short entries.
I have kept those trades that still looked longer-term bearish active for several reasons: Longer-term, less active traders who positioned for the full move down, planning to ride out any counter-trend bounces that didn’t trigger a stop; Traders who might have taken some long-side trades last since then in order to hedge any shorts that they decided to keep; as well as those looking for objective new short entries or maybe an add-on to an existing short trade on a bounce back to resistance. In order take full advantage of the trade ideas listed on RSOTC.com, don’t limit your search for new trade ideas to Trade Setups category. Many of the Active Trades, some entered months earlier, can often provided objective long (or short) entries on pullbacks (bounces) to support (resistance). Ideally, you want to look at trades that still have plenty of room left before the final target when taking a new position on an existing Active Trade.