Good job Chart.ly!

Here’s a great site for anyone who likes to look at a lot of charts!  I know I do.  It’s http://www.chart.ly and it’s a site that allows Twitter users and StockTwits users to posts the charts they’re looking at.  They also do something else that I find very interesting.  They list the number of charts posted by popularity.  So you can see the number of SPY charts (currently the most popular upload) that users are looking at.  You can then go through and see everyone’s take on where we’re at.  This way you can get a general sense of the sentiment out there or the biases forming, or simply other ideas you may not have thought of.  You can also enter a ticker of a stock you’re following and see if anyone else is following it.  I think it’s a site I will be visiting regularly.  Once again, good job Chart.ly!

YUMI LOOKING YUMMY!
Here’s one of our all time favorite patterns to trade — the fakeout.  It’s a variation on a trade made famous by Linda Bradford Rashke who called it the Turtle Soup Trade after the Turtle traders who bought breakouts to new highs and sold bereakdowns to new lows.  Because so many trend trading breakouts fail it’s a great place to go looking for potential reversals.

Once the herd is in at the bottom, price reverses, often sharply, and can explode to the upside.  Here’s an example, YMI:

Nice, isn’t it?  When it comes to these trades we’re looking to get into the trade at the break of the down trend line or after price consolidates after the initial move off the bottom.  our goal is 50-100% and our stop is the prior failed low.

Good luck everyone.

PLUG  SETTING UP

Looks like we have a falling wedge setting up here on PLUG.  Be sure to wait for a confirming break of the upper channel before entry.  It would also be nice to see confirming volume of 2-3 times the 20 day average volume.  Here’s the chart.  Good luck out there.

VIV LAS VEGAS!

Here’s a great trade we made in LVS when the March 09 bottom fishing trades were in full effect.  You can see by the chart that we waited a little long for our entry — that’s because (like the rest of the financial world) we wern’t too sure about the staying power of the recent rally.

In any even when we saw LVS pull back to the 20 day moving average we took out chances and bought the dip.  We were handsomely rewarded with over a 100% gain in 11 trading days.  Now THAT’S the way we like them!