Post feedCME & SHLD
Last night I used CME as an example for a bull put spread. Today it has sustained a $20 point move. I just wanted to clear the air that if you ever anticipate this big of a move...it might make you wish you hadn't traded it at all. Sure you made money, but even an aggressive trade yielded a $3.15 credit...which is minimal compared to a $20 point move.
Also keep an eye on SHLD. For you long term traders, check out this ENORMOUS cup and handle pattern...
If you are not familiar with this pattern, run a search for it and you'll find plenty of resources. But the formation here is textbook. A classic trend continuation pattern. Something for the watchlist perhaps? One could place a trade here up to resistance, or wait for the pattern to confirm by a break of this over head resistance. Perhaps trade both?
Also keep an eye on SHLD. For you long term traders, check out this ENORMOUS cup and handle pattern...
If you are not familiar with this pattern, run a search for it and you'll find plenty of resources. But the formation here is textbook. A classic trend continuation pattern. Something for the watchlist perhaps? One could place a trade here up to resistance, or wait for the pattern to confirm by a break of this over head resistance. Perhaps trade both?
Hi Jeff,
I am familiar somewhat with the cup and handles but really don't know much about them. What is the right entry point on these things?
Posted by
Anonymous |
8/04/2006 04:27:00 PM