part of the Simple Approach series
I reviewed numerous charts this weekend that have a similar characteristic with $PCLN: intensified buying or selling when RSI hits 30 or 70 respectively. Here is a daily chart on priceline.com to illustrate:
If you are of the camp that history will rhyme for price then $PCLN is at a Buy signal today. If you are not of that camp, what keeps you from believing that this is a high probability trade?
– DM 9:55 AM CST
New IPO $FIT had a great debut but has found some very stiff resistance at the $40 level:
– DM 9:00 AM CST
During stock research this morning I noticed this well-defined Down Channel that has formed in $ITW:
Now that price has begun to arm wrestle the 200 SMA I will be watching for a move down to the $90.50 level. An ideal trade here would be a Put Ratio in my opinion.
– DM 10:05 AM CST
I like the June 80/82.5/85/75 Risk Reversal Call Fly for an ADBE earnings trade (long the 80/82.5/85 Call Fly and short the $75 puts).
I have an existing position in FDX but for an earnings trade consider this:
Long the June 182.5/185 Call Spread
Short the June 177.5 Puts
Cost: $.20 credit
– DM 10:40 AM CST
Bulls are on TiLT as the $TLT remains in this Down Channel since the Feb highs. I am looking to initiate a Bull Risk Reversal soon (Long Calls/Call Spread/Call Fly & Short Puts).
Here is a daily chart via Finviz on $TLT:
– DM 9:45 AM CST
Call Buyers nibbled today at the June $101 Calls in $SWKS:
– DM 9:50 AM CST
I trade several baskets of stocks that have a specific trade setup that I look for. One such basket is the Submarine Basket. The goal for this basket is to find quality stocks that have pulled back to a notable Support area and then assess the behavior of price. I typically set Price Alerts as a first step.
One thing I have noticed over the past few months is this: the watch-list I keep for this basket continues to expand.
I have had $BAX on the list for a few days now and have been studying the Daily & Weekly charts quite a bit. Here is the Daily chart with a 150-day and then a 200-day candle view:
Could this be a false breakdown? Is the Red Volume cluster a capitulation?
– DM 8:30 AM CST
The short sellers in $GMCR have had their way since November 2014. I see a key Support level being tested on the Weekly chart:
I have also highlighted the RSI at 24. Yikes.
Disclosure: I am short in the Submarine Basket at $94 (2/3 size position).
– DM 9:20 AM CST
A few trades to consider:
Bullish: long a Risk Reversal
Bearish (at least for the Gap Fill below, shorter-term): go long a Put Ratio (then trade for a bounce )
– DM 11:10 AM CST