Stair Step - The Gymboree Corporation (Public, NASDAQ:GYMB)

Stair step patterns offer low risk entry points. I missed the first step up, but managed to get the second long and then the short after price stalled out at $17.00. I'm keeping this one on the WL for tomorrow, because sometimes the stairs carryover to the next session and they can run all day.

IDCC was a gapper trade for me two days ago. Gravestone doji trigger bar just below downsloping 5 period EMA - took a partial after 3 consecutive red bars. My target was the 50% FE (Fibonacci extension) but IDCC didn't want to go there, at least not today.

POT made a lame attempt to retrace, but the candlesticks were screaming "short me". Trigger bar is NR7 - spinner with upper shadow. Partial after 3 WRBs and exit as price approaches $68.00 just below 50 % FE. It's not obvious on this timeframe, but 1 minute shows clear signs of capitulation volume as price approaches FE.

V ended yesterday's session with a bearish topping candlestick pattern. I placed my fibs from PDH to ORL. I was expecting it to carve out a few inside bars and roll over, but V rallied back up to the top of the R-zone. Finally, it came back in and printed NRIB and I went short. After testing ORL, it retested my BO point, and eventually succumbed.

Shorting Weakness - Lehman Brothers Holdings Inc. (Public, NYSE:LEH)

Last week I mentioned this symmetrical triangle on the LEH daily chart. This morning's weakness in the broker sector pre-market, was the perfect catalyst for a BO.

This trade got off to a very slow start compared to UBS, JPM and MS, the news makers. Over time, it became obvious that the slowness was due to the stair step pattern of decent which involves a lot of NR consolidation as each step develops along the way.


NDAQ caught my eye last night as I was doing my EOD review. The trend line breach after such a bullish run, could signal a pullback. It carved out a clean base & break short.



RIMM triggered a short as the markets broke down in the latter part of the session.

I was watching the Emini NASDAQ futures all day for a trend line break, but the action was so sloppy that I ended up shorting the S&P futures instead.