Jeff,

Makes sense to me, count me in.

Thanks

Mike

Amen, brother! Remember, too, that all gaps must fill (see chart - two days ago)!!!

Disclaimer: in NVDA puts at 32.05.

thanks Jeff!

I thought you "might" step in and show the obvious. BTW SausalitoMike - NOT ALL GAPS Get filled in - that is a Myth - Rumor - Legend! While most do fill in they do not always. How do I know this? I got on that track a long time ago and spent many- many hours trying to prove or disprovre the theory with literally hundreds of charts. What I found out about Gaps is that I use the mid-points of them as potential Support and Resistance areas.

I saw some comments on COH from earlier. I took this trade today at 35.60. I see yesterday as a breakout of the pattern (I think you can view it as a H&S inverted with a sloping neckline, or a sym triangle) and I see today as a retest of the breakout point. My exit will be a strong close below the 35.50ish area. So far so good, but tomorrow will be critical.

I like the looks of NVDA, Jeff. I'm going to have to take a closer look tonight.

SausalitoMike,

"all gaps must fill." Please elaborate. Also, which chart are you referring to? Was it one posted by Jeff? The only chart I see was of the dow, but that was on Wednesday. Help a confused mommy out, will ya?!?

:)

disclaimer : this has nothing to do with NVDA

so my question is....if the fed decides to cut rates again will that throw the "stinky" market breadth out the window?? (in the short term at least)

S. Mike, nevermind! EB must have been typing the same time as me! HA!

I was asking, though, because I thought that in my technical analysis book that Murphy said that gaps sometimes do not fill. Where is that darned book!?!...

Yoooo-hooo, Murphy...?

Oops, I meant $33.05, not $32.05.

Thanks Early Bird, I didn't necessarily mean it to be an iron-clad rule, but it is something that has a high probability and goes into my thinking. The upper channel would be the resistance/stop point, and the lower channel would be the main target. Would this be a correct assumption, in your opinion?

Jeff,

I was just about to accuse you of wearing Surlypants until the end of that post. Funny stuff.

Brett, Surlypants don't come in Big & Tall... I thought you knew!

:)

(Not saying that you're fat Jeff, just tall!)

Everyone should take a look at $BKX (and draw an upper trendline)

Thanks Ben3, Doji Girl, and Jeff for your answers. I appreciate it, and I'll take all the good luck I can get.
Lara

by golly Jeff I got it! NVDA didn't seem like a hard one to figure out to me and I bit off a chunk. Personally I had a harder time seeing MCRS as put-able.

lol - you're in rare form today Jeff!

Looks like a great entry point to me - if it rolls over in the next couple of days.

S-Mike -

You got it!

Steve Nison says it best. Quote; “For a quick demonstration of how a gap can be filled intraday basis, watch a stock that gaps up a point or more at the open. Since some of the professionals make a living fading the gap, or trading in the opposite direction from the gap move:If a stock gaps higher a substantial amount at the open, the pro will sell it short for a quick trade. If enough selling pressure occurs, the stock will drop enough to fill a portion or all, of the price vacuum. (Please don’t try this technique yourself, unless you are a very experienced trader as it involves extremely high risk.)”

Tonya,

I would say that a rate cut will probably change the breadth in the short term. At least until the next bomb drops. It is real hard to believe that the expected rate cut isn't already priced in after yesterday’s action.

Let's face it, the economic outlook isn't too rosy.

Investors are just too damn emotional and are placing too much weight on what the fed says and does. The Fed definitely had a hand in this credit mess and all the easing of monetary policy isn’t going to get more people qualified for loans.

Our house has been on the market since August and we have had six people look at it. Why? People aren’t getting approved for loans. We have lowered our price by 15% and soon to be 20%. Still, no buyers. Our realtor is telling me that come March, a credit score of 680 or lower will be required to pay 1 to 1.5 points in addition to a higher interest rate and a mandatory down payment to be approved for a loan. This further compounds the already tough situation.

We are going down a lot more, eventually!

Logan,
I'm a mortgage broker and live through that shit every day! You are right, it is getting harder and harder for people to get loans....

I feel for you and the realtors much more than the home sellers. I just don't have the equity I thought I did. Oh, f'ing well. At least I don't have to make the living that you do.

We shared a half case of wine with our realtor a couple weeks ago and are again this week. We have to get through this one way or another. Trading helps too!

I feel for you.

From your short watchlist

NEVER hold ZOLT positions through earnings, it's unpredictable. I stayed away since I still have burnmarks from trading it last year

Is it a really good short now?

MCRS- Misprint. My fault...

And I am dying to know...WTF are Surlypants?

Hi Jeff
I am definitely learning from your posts . Pls continue the good work. Your site is invaluable.
Sam

surly - adjective
1.churlishly rude or bad-tempered: a surly waiter.
2.unfriendly or hostile; menacingly irritable: a surly old lion.
3.dark or dismal; menacing; threatening: a surly sky.
4.Obsolete. lordly; arrogant.

Hey, I couldn't RESIST! Sue me!

Surlypants:

a garment extending from the waist to the knee or ankle, covering each leg separately which, when worn, cause the subject to become sullenly, ill-humored or gruff.

Logan,
Trading full time is my ultimate goal, which is the only reason I am still working in this f'ing industry right now! For the most part, I have the flexibility to do what I want (get on a conference call with JK in the middle of the day, watch the market, place trades, etc.), which I would not have if I was back in the corporate world. But it is a challenge to make a living at it, no doubt about that. I just try to tell myself I have to suffer now, for better things to come!

Amen LisaG!

Thoughts on AIG and WB? They both look like they are at resistance.

DOWN WITH NVDA :-)

Ahhh...that sucks.

I'm not trying to be hostile, ill tempered, or unfriendly...

My bad. Just trying to have some fun.

jLogan
i hear ya, i was wondering myself if the rally yesterday was due in part to the 50 basis point rumor....

the housing market is going to hell in a handbag (and it's not a Prada) and it is going to get worse before it gets better, a few houses on my street have dropped $100,000 - $120,000 in price since being listed and they still have the 4-sale sign in the yard!! it is craziness....

i guess i was just a kid the last time this happened, my grandpa and i were just talking about this same thing this afternoon....my cousin is in a sticky situation with his mortgage right now....

i feel for anybody who works in the real estate industry, the few friends i have that are real estate agents or mortgage brokers are all "starving" right
now...

Jeff:
I reviewed my Prophet Chart and notes on NVDA and noticed my chart is identical to your second one above. Given my recent track record, this is either dumb luck on my part, or an unfortunate coincidence for you. I had been searching for stocks that didn't deserve to go up sharply during the past few days, and NVDA appears to fit that bill. Thanks for putting me in front of this trade, Bought Jan 32.50 Puts at the closing today.

Death to NVDA

LisaG, Logan,
As a realtor (for over 22 years) I feel your pain. I think the mortgage brokers are hurting worse than the realtors now. I've had a great year, actually. Yes, prices are lower but people still have to live somewhere and I am selling it to them. But back to trading...

JEFF - Excellent Forbes article. On the IT platform, if you put A/D line studies, how does that work if you are looking at an individual stock?

C2 - you cracked me up big time (previous thread). thanks for the best laff of the day. But I'm sorry your day sucked.

NVDA - Just 2 months ago I had a really nice trade on this to the upside. I see your short term downtrend which I think will go lower if and when the market tanks. But if the market rallies, I think this will also. I'm not buying calls on this but I think there are better (easier) put trades out there. But that's just my 'pinion.

GME - Someone mentioned this as a put idea. No way! I just got out of my calls with about 80% profit in 3 days and would still be in it if I wasn't so askeered of the market tanking any minute now. I'm looking for another excuse to go long if it gets back to MEE.

Brett - $BKX - perzackly why I jumped back into STI yet again. Someone mentioned another banking stock, KB, that I hadn't heard of before which also looks like a perfect entry.

Whew...think I finally caught up!

Jeff,

No worries. As usual you ended the post with your special brand of humor. Nice article, BTW.

I was listening to Kramer’s interview of Giuliani on the slick TOS desktop software. Now I am listening to his banter… He just said your most bearish position is “cash” when the fed lowers rates… Yeah, rates go down and you don’t earn as much interest, but “bearish”!?!??!?!?!? I just heard “cash is no longer king”…

I can’t believe what I am hearing!

Jeff,
Looking back at the last post it looks like I was the first to question NVDA. I apologize if it seems like i was questioning your call. I've only been doing this for about 2 months trying to see if I could make a living doing this and thanks to you (and ZUMZ which is also from you) my (very) small account is up hundreds of percent. I've been following your watchlist religiously and most of your calls are patterns or support/resistance bounces. Initially I didn't see either. I knew there must be something there so I asked. Thats all I meant. I'm just trying to learn.

Jeff,
Why didn't you tell me sooner, I bought a par lot of MCRS puts. And I thought you knew what surly pants were. Boy am I out of touch!

And I have I mentioned lately that the more Bernanke speaks the closer I become to the lovable Fed?

Lastly, what are clean cups?

Cheers,
Arty

Hey JK (aka "Surly Pants"),

Your direct and to the point approach to getting your analysis across to us is appreciated. Keep it coming!!!! It's also refreshing to have you take a little ribbing about it and let us all chuckle along with the exchange between you and your family of OA's. Helps to keep smiling while we're learning. ;)

Thanks! When do you find time to sleep!!!! Don't know how you do all you do...but it's VERY much appreciated.

GS is up almost $3.00 post Bernanke speech!!!! Can you say day trade candidate....We'll see what happens in the morning, could be an interesting day.

Warmest Thanks,

Linda

Jeff,

Trying to learn a little so bear with me. What you drew on the chart are you saying its a broadening formation? because it looks like a short term bull flag. Maybe I'm not taking in the chart totally... Could someone help explain and is there a target price for the downtrend? $30ish?

Thanks!

-Stin

Stin, I wonder if the bull flag you see on NVDA is not "valid" because it occurs at the bottom of a downtrend (albeit a short one)? Jeff?...

Chris, so sorry to hear your hampster died. Want a replacement? My kids would not notice for a day or two I think.

It is just amazing the things I learn on this site - surlypants?

Nice,

I just come because of the utube vids!

And because I can't get you and Eric on the cast.

Oh yeah and 411 :)

Thanks a bunch for this site Jeff!

Krystal,

Thanks for the response... I see what you are saying. But this could possibly go back up to $38 before dropping right?

I know the this today is attributed to earnings and low volume... Please help newbie, hehe.

Thanks

traderHal,

I'm sure you know this but ZOLT is up on heavy volume. I don't think it will drop... It looks like it will stay around 40$.

Surly pants. I feel a new Angry Trader chapter coming on. **** Sneak Preview **** it will involve a young JK contemplating life as a World Mashed Potatoe Wrestling Federation professional. Now whose pants are surly? And more importantly, do they come in spandex?

DG I have been thinking of you through all this housing stuff. Glad to hear things aren't as bad as I imagined.

I lost track of who it was that mentioned shorting WYNN and/or LVS but WYNN looks pretty good to me but I want to see it heading down another day before I get onboard.

Brett $BKX is proving what we all know. Lower highs, lower lows. Is that an echo I hear from a bottomless well?

Chris, your post from the last thread had me laughing, too. Why have you been so scarce lately, my friend? Did you see my entry from dictionary.com earlier (surly)? Jeff backed into that one, didn't he!?!

Bob, your kids wouldn't notice for a day or two... that's funny!

Amy, AIG: I'd like to see some more downside. WB: looks good.

Unless I'm wrong. :) Still headed to Dallas?

Krystal,
Yes, going next weekend. If you are going, let me know, agekmyers@yahoo.com

Thanks for your thoughts on AIG and WB.

Amy, Unfortunately, I'm not going (I replied to you in the Trader chat).

I hope you have a good time. Learn lotsa stuff, okay?

:)

WOW!

Did anyone see the futures tonight? Bernanke, I fart in your general direction!

Tomorrow should be fun.

Laney, that was too funny!

Dare I say it... pffffttt! Ah, I'm going to bed!