DG,

MDR. No problem. I just don't think the action within the formation makes this a meaningful looking triangle. The cup and handle is too pointy for me as well.

Jeff .. you probably didn't see what I posted in the last hour on your previous post ..... (I knew you had to be kicking pretty high today!)
///////////////

Ah.... Mr. Kohler, (I know you haven't said anything yet about this ... but you should!)

Let me be one of the first to congratulate you on the MON pick on 1/1 and no doubt holding through earnings to enjoy this 10pt up today ... Once again, starting your year off with a bang ....

Hope others picked it with us! :))

I'm glad to see DRYS on the bearish portion of the list. If my portfolio weren't so delta negative I'd jump in but I don't think I can risk being any more bearish than I already am.

Jeff,

You mentioned in a conversation just before Christmas that you do have an emergency stop type of philosophy where you will immediately close a losing trade and not wait for the end of the day if it goes past a certain point. Would you be willing to share your rule on this? Do you have a hard and fast rule on this? I imagine CME was a candidate today.

Hey Jeff!

Seen LCC lately! Jumped on that one back in mid November per your call-out...I got in at $23.50 and look at it now... WHOOHOOO Broke support yesterday again.. and now its under $12.85

Now I'm beginning to wondering if this makes for an attractive buy-out/take over candidate for this airlines...

None the less.. the LCC ride has been FUUUUUUUUUN!

JK

what do you think of ISRG as a sym triangle waiting to break in either direction??? looks like it is getting close to breaking out, maybe tomorrow.....

DRYS and WFMI will go higher in the next few weeks. Why you ask? Because I recently went long those two (WFMI just today). No other good reason. Although Jeff being bearish on them makes me draw a long sigh. We'll see what happens...
Stan

Jeff, SGR kicked my butt today too. Twice, actually. I took the first trade a week ago, got out the next day for a tiny loss realizing I had jumped the gun and it was not going down yet. So I waited 3 days and got in yesterday thinking THIS time it was really at the top of the resistance. Who'da thunk that a piece of $hit stock like that could rally 5 points in a day! At least my VMC trade is making up for the loss.

Jeff,
All though I had a great day today I am sure it was not as MONstrous as yours. Many trades I am in that moved with the market today were from watch lists of Kohler past. My big mover was SFLY today which was Put-o-licious in its own right!

Congrats and thanks Big Man,
Arty

No trades for me today, unless you count old man Theta at 1811.85 Even though I posted SWIM bouncing, by time I noticed it, it moved past my entry point of $16.90 (next time). I

Stan, on WFMI, I have a long term trend line drawn in starting in late 1999 with touches in 2000, 2001, 2007, and this week. If the stock continues to "obey" this line, it'll bounce. If not, the fall may be pretty hard.

What made you go long on WFMI?

Stan, on WFMI, I have a long term trend line drawn in starting in late 1999 with touches in 2000, 2001, 2007, and this week. If the stock continues to "obey" this line, it'll bounce. If not, the fall may be pretty hard.

What made you go long on WFMI?

Jeff,

Where do we send the commission checks we are made last year from your helpful hints? I want to personally thank you for helping me focus on many things I was doing wrong and for hosting this incredible forum of many great people!

I have made much already in 2008 and looking forward to the remaining 363 days - it is a Leap year - yeah!

As you told us to do - I am trying to pay back some of what I have taken.

Thanks for all you do!!!

Karl

Krystal- re: WFMI, it was more of a fundamental play than purely technical. There are a lot of Whole Foods Markets in our area and they are always packed and they're building more.

I am one of the few people who traded bullishly on MON but I'm not doing a big happy dance. That's because I traded straight naked puts on them (100s).
Stan

Stan, I've witnessed the same thing at Wild Oats in Indianapolis (who is now Whole Foods for all intents and purposes, isn't it?). Always packed full of people.

I'm watching this stock to see what it decides to do in next few trading sessions. You mentioned that they're building more stores. I'll take responsibility for at least one of those new stores as I've spent a buttload of money there. "Real food" seems to be a very lucrative business, doesn't it? Thanks for your response.

Jeff,
I second the motion of the question from the bikini-clad girl in the icy waters of Virginia Beach. At what hour of the day did you bail on CME? If ever there was time to implement the Emergency Bail Button... this one was it.

Enquiring minds need to know.

Benton,

Hope you are rolling in dough buddy.

VABeachGirl,

I might disappoint here, but I don't have a "rule" on this. If I interpret something is long gone, has exceeded my worst case scenario, etc...then I make the decision on the fly.

Popeious,

I caught the LCC train at $25 and rode it to $15, but didn't look back. Congrats on the profits!

Tonya,

ISRG: Not sure I could count this as a aymmetrical triangle as the "highs" are all over the place.

Stan,

DRYS/WFMI- Fundamental plays? I'd be interested to hear more. I love to see someone who understands technical analysis override trading decisions with fundamental analysis.

At least tell me more about DRYS!

Jeff- DRYS was a technical choice. I looked at the last time it bounced up from about 70 back in November and in late December when I saw it dropping to that level again I drew a fib line that showed support was indeed just above 70. On December 26th I took the trade buying the stock at $72.20 when it climbed a smidgen higher than the previous day.
Stan

Is MON's "pin action" a breakout of fakeout?

MON jumper 8.5%, the following sister trades also reflected increases.

AG=5.5%, MOS=3.1%, POT=0.5%.

All four reflected similar strong diagonal support trendlines (6mo) except for AG which reflects either a ascending triangle or (top heavy) symetrical triangle?

So, with AG being the strongest gainer of the three associated trades but sporting a different pattern, does this read as a triangular pattern breakout or possibly a fake out do to the fact that the incease was a result of pin action from MON?

OA's input is much appricated.

Jim

Whole foods (not) - go fishing and hunting! Cabelas (CAB) - with all the new stores, great apperal, fresh water fish tanks, great animal displays and delicious salt water taffy - won’t some OAs get this trade rolling again? Screw the wholesome food. KILL! Go Cabelas!

F2T- Huntin' fishin' and killin'- I'm sure you're getting Raimo very excited; polishing his gun with extra vigor. Do you think CAB is close to bottoming out? Lots of upside potential when it does. If the economy tanks we may all have to return to hunting and gathering and CAB could do quite well.
Stan

Hi
Could someone tell me if prophet charts are free with TOS . Or do you need to be a Investools student to be able to use it.

Jeff,

A follow up question to the "just get out" closing trade. Does emotion ever come into play when you make this type of decision, is it just a gut thing, or is it just a disgust thing?

I didn't have to make any decision like this today. I'd just like to have your opinion in my arsenal for the next time it comes to that.

Grazie, Kim

Dian,

Prophet Charts is free with TOS.

Kim- for me if the trade is going against me with lots of volume behind it I get out of the way. Look at CME over a 2-day period and you can see the huge volume that helped the stock cascade lower. I have bearish trades on CME so I was cheering it lower all day.
Stan

Dian,

Send your monthly check to:

Eye wants your money
One for the money,
Hav-sum, AZ 12ezlane

But, if you like you can put a small amount (of your likening) with TOS and have everything for free. I recommend paying me!

Oh! Where do I send your invoice? (service 2 hours)

PS: watch out for the scams.

Folks,
What do you think of GS? It looks like forming a descending triangle and 204.85 is the support. If it breaks, it'll go down. I'm new. Could someone please see if this is true. If not, what mistake am I making.
Thanks a lot.

Sam- I see the same thing except I put support at the 200-201 range. After 9-18-07 it gapped over 200. 12-18-07 it closed at 201 and the next few days it closed within a penny of each other in the 200 range. Looks to me like it will close around 200 tomorrow and that's the make-break point. Will it bounce or crash through? If it goes south you can use the widest point of your triangle as a target, about 46 points.
Stan

SHLD -- What do you think of this one for some PUT action. I have it sitting at a descending trendline and resistance and $107.50. Support at $100.50

Calvin

Stan,

On the "just get out" exit response. That is a very common sense approach. I like it. A logical decision can be made versus emotional with this method.

Thanks, Kim

GS - I'm sitting on my hands waiting for this thing to break. I was watching $205 but I'm going to look at Stan's price reasoning as well.

Calvin,
I think the descending trendline has been broken the last 2 days of trading. But that depends on whether you use the wick or closing price on 12/11/07. but with that being said....the support is $100 and if breaks this level it will go lower. But personally I don't see many points to the downside? But what do I know?

I started 4 sentences with the word But....nice.

Jeff,

Do you have any rules regarding short interest when taking a bearish trade? Is there some limit beyond which you won't go short (e.g., more than X number of days for the shorts to cover)?

Thanks, TD

Calvin, I rode SHLD down the last leg from about 112 to 101. I was thinking of doing it again but today's action looked a little too strong. I'd probably wait a bit and see how it acts the next couple of days. If it breaks below 100 I see another 10-15 points easy.

Kim, in GS I sold a BC spread when it hit its head on resistance a few days ago. I'm also waiting for the Big Break below 200 to get into puts.

2020,

I just read your "Jeff's Greatest Pearls of Wisdom" post from the other day. Great link! Any chance of posting more of these 104 "Pearls"?

Larrz

ANYONE HAVE CF ON THEIR WATCH LIST.... LOOKS LIKE A GREAT BULL FLAG BREAK OUT TODAY, WITH A POTENTIAL $25+ MOVE, THE OPTIONS SEEM TO BE PRICED A LITTLE HIGH... ANH FEED BACK WOULD BE GREAT...

TONY S

Tony S
Something tells me Jeff is watching......

His daily blog

"A few other non-watchlist related stocks I have mentioned in previous posts, and have taken trades on that are moving today are TIF, OXY, TRA, CF"

Something tells me you didn't follow the Master's clear instructions.....

"or just skip my writing altogether only to participate in the chat that occurs in my comments...shame on you. Don't let me find out about this, or I will do to you what I did to the last unwelcome presence on my site."

I would be looking for Chuck on your doorstep in the morning!

Cheers,
Arty

Tony S,
And with that Implied volatility as high as it is you might want to look into selling puts or going synthetic on this one. If you think it is still a solid entry.

My .04

Cheers,
Arty

Hi Larzz,

The best place to find a gold mine of information is the link to "Greatest Hits" in the above left column, (http://www.optionaddict.net/greatest-hits). There are a bunch of great articles there, such as "How bad do you want it?" (http://www.optionaddict.net/archives/2007/3/9/another-week-in-the-books.html)

Also make sure to check out the "Price Patterns" link above (http://www.optionaddict.net/price-patterns). It has some great videos. Or the "My Trading Videos" link (http://www.optionaddict.net/my-trading-videos) or "My Trading Style" (http://www.optionaddict.net/my-trading-style) or the, well just about everything here.

To be quite honest I have probably used les than 5% of the information here. I am committed to study it all, along with Murphy's book and a few others. My main emphasis for the next 60 days though is this blog, which is why I printed off 123 pages of a lot of the highlights. I'm taking tomorrow off to just read Jeff's stuff. I'll try post 1 or 2 more that are extra good this weekend. We'll see how well I do with my "New Years Resolutions".

Happy trading,

Jim

Oh Oracle of Price Action,

In studying all of the listed charts above, LNN seems to stick in my head the most. It does not make big moves very often but when it does, it does. I was wondering how this turned up on your radar?? Is it the recent surge that caught your attention? A particular pattern that indicates additional momentum?

Please do tell...

Arty

Thank you for the shorts list, Jeff. I appreciate it.

Would like to add LVS and WYNN.

WYNN: check the 5yr trendline, are we not at REE?

Jim

Arty,

I like your style..... I did read Jeff's note on CF, I do like your second response.... That is the feed back I was looking for.... I already checked out side and no CHUCK....

Cheers, have a great day...

Tony S

What is a good trade for MRX and CNA? PUTs or Stock?they seem slow..

any thoughts anyone.

Holly Moley!

I'm selling Jan Naked Puts with a $0 strike price. Just think when this 1929 market stops going down, we are all going to be rich! Buy, Buy, Buy - one problem, does anyone have that date?

ARTY,
Blood brother.

I rank the watchlist every week according to my rules and LNN is Numero Uno. I can't wait for it to break higher because when it does... it'll be CHICKEN WINGS AND BEER FOR EVERYONE!!!!

CMA is my first 100% gainer for 2008. Snaps to Jeff for that one. Volume is still high as it's plummeting but it's within a buck of my target. Might have to take the money and run.

EOG is back at REE today. I got in yesterday and am paying the price for deciding that it was worth the risk of getting in a couple of bucks above REE. Good choice, huh? Catherine was impressed. Grab it while you can.

Is VIP at anyones REE? I have it on my REE...

Chris, How many points do you have projected for LNN to move?

Doug,
I see a 20 point move possible over a pretty short timeframe.

Chris you is my brother and I would love to have chicken wings with you anytime!

I am liking where LNN is right now.

I have VIP re buy just over 40

Cheers,
Arty