NRIB (NR7) - Research In Motion Limited (USA) (Public, NASDAQ:RIMM)

I think the RIMM trade is self explanatory. If you're not familiar with the power of NR7, read this post from last week.


JPM breached the top of it's steep upwards channel on Friday. Today, it carved out a higher high with negative divergence of the RSI, so I put in a buy stop order on break of blue line. I'm keeping this on the focus list - looking for a correction back to lower channel line.

Range Trading

The first chart is X and it was one of the weakest WL stocks Friday, setting up a short when it couldn't hold the R-zone of the PDL to ORH as support.

Today X printed an IB in the upper shadow of the OB, green on green, for a target trade back up to Friday's high. It then carved out a tower top reversal pattern for a short back to the R-zone.

SU and CNQ set up shorting opps on Friday after Thursday's big rally. I was hoping to go from top of channel to lower channel, but prices stalled.

Today they opened weak but found support on the lower channel and rallied back to test Friday's highs. SU carved out a morning star reversal for a long entry and CNQ IB. After testing Friday's highs, we had shorting opps.

So, we were long SU and CNQ Thursday, short Friday, long and short today - making the same money over and over. Tomorrow, I expect the channel to break.

I added ECA to the short oil list as it extended to the 50% Fib. level of the ORL to PDH.


MS, a long on Friday, should have been shorted on a trendline break, but I missed it. Eventually, it carved out a bear flag for a quick short.

Technical Trade of the Day - Continental Airlines, Inc. (Public, NYSE:CAL)

CAL is a technical trade. As highlighted last night, CAL is setting up for a breakout on a breach of $38.00. In the meantime it attempts to bounce and sets up a perfect rising channel breach. Don't take the trade immediately on the breach as these types of setups are prone to bear traps. Wait until price takes out the previous bar low.