Solar complex gapped up this morning. All of these gapper trades have the same characteristics - bullish shallow rounded base, NRBs, and big volume on the expansion. The traditional (old style) Trader-X gap long is back. Must be the start of a new bull market! Place fibs from PDL to ORH or early reaction high.
Rounded tops are bearish and rounded bottoms are bullish. FLS formed a bullish rounded bottom (3 NRBs on 15 min.) at the 50% Fib. retracement of the ORL to the morning swing high. Partial out at P and R1.
AAPL - wide earnings gap. The setup felt similar to my RIM.TSX trade from Monday. After gapping lower, price carves out a tight sideways pattern until the down sloping 5 period ema catches up. We had two NRIBs, the second of which was NR7 leading into price expansion. The BO bar (7/15) closes near its low which is one of my critical success factors in this type of setup. I took a partial as price approached the round $ number on the 3rd WRB.
JOYG was not a wide gap, but it carved out a number of long upper shadows and could not close above the down sloping 5 period ema. Short the break of red inverted hammer. Again, the BO bar closes near its low signalling a great start. I missed my partial on the third WRB, so I tightened my stop, but I was rewarded with a hanging man and price broke through yesterday's pivot low at the $50.00 pt. I tightened the stop again as price consolidated at $50.00 and was stopped out on a partial. Shortly after, price swooned down to S2 (red line) on a huge volume spike and that was the end of the move.
Today was the flushing out day that we've all been waiting for. I took two longs this afternoon AAPL and RIM.TSX. Here's a picture of the AAPL trade. The bullish rounded bottom is a great long signal because it shows that demand exceeds supply. Everytime bears try to push price lower, more buyers step up. I'm holding a partial on RIM.TSX for a swing with a BE stop.
FLML tested and breached the intra-day pivot in early trade, followed by a retest and the formation of a shallow rounded base, setting up a low risk dummy long. This setup is very similar to the VMW trade on Tuesday.
RIMM became a BO candidate after testing the pivot point (blue line) several times in early trade on both Wednesday and Thursday. The move from the PP back down to retest Wednesday's low was on tepid volume. The reversal at 2:00 carved out two bullish WR green sticks on an uptick in volume. This move was decisive and was followed by an inside bar in the upper half of the second WRB. I entered long on a break of the inside bar before the actual PP break. Locked in some gains just below $103.00 and waited for a possible retest of the PP, keeping a close eye on the lower time frame to monitor volume on the retracement (lower volume on the pullback implies a retracement as opposed to a reversal). The PP held as support and price expanded nicely into the close.
