ATM Machine

The market is in the "Print Money Mode" this morning. I appreciate the comments left for those who watch Kramer. I may not watch his program, but I know when he drops a reccomendation what happens. Even if they don't normally sustain these gains, the gains will happen. So again, thanks for the heads up! I bought a boatload of ATI Dec 95's at the open for $1.10. The VIP profits continue to swell and it looks like our good old gaming stocks WYNN and LVS are on fire this morning.

So I guess this means the market is still bullish? Go figure.

I'll be back after I go wrestle the market for awhile.

Wow! As much as I wanted to bail, I hung in there on ATI, LVS, and VIP - all going crazy this morning. Thanks again for all the great advice, Jeff! Now I have to resist the temptation to sit and watch my computer screen all day. I do have another job.

John M.

Call me crazy and/or stupid but i added to my BEN position after the successful retest of the neckline today. The pattern is still intact and my losses so far are perfectly understood and expected.

Also got into RKT and LVS on the flag breaks and ESRX on the head and shoulder reversal (though i'd like to see more volume).

VIP is on FIRE. I'm in some stock from a few days ago and wished I had went with the options, but I'm not complaining. It may turn out to be a nice trend play with additional opportunities to add on bounces or further breakouts.

I'm in the BEN trade, but I need it to come down to avoid my mental stop. Don't like the strong gap up, but it seems to be fading fast. We'll see if the bears can do their thing on an otherwise strong day.

I'm interested in hearing comments on how others are addressing entries on price pattern breakouts, specifically whether you're waiting for confirmation (price and volume) or anticipating the break. For example, I don't see LVS as confirming a flag breakout as of now since volume, while decent, is not yet even average, and price action certainly could fade before the day is done. While it looks like a breakout will happen and volume may very well be giant by the end of the day, I view it as anticipatory at least until later. See LVS on 11/27 for an example of what can happen when you jump the gun and declare a breakout prematurely. Am I wrong on this?

On this point, I would really like to hear thoughts on when/if it might makes sense to anticipate a breakout (and take on the additional risk), as I've found waiting until later can result in MUCH less profit and sometimes even a trade that no longer makes sense from a risk/reward standpoint. Judging from the comments, I suspect many are anticipating breakouts and it certainly can work hugh in certain trades.

Nice breakout on nue.


Pat

NUE - It broke 52 weeks high with decent volume.

Breakout of a bull flag on WYNN. Possible 10 point target!

Sarah

Hi All...nice comments. Wondering what your targets for ATI were?
Beth

So I guess we call BEN a head and shoulders failure pattern.

Sigh...

MikeH

Yes, Mike, it did fail. But think of your trading account as a car. Your job is to just keep it on the road. Sometimes that involves sitting back in cruise control doing nothing. Sometimes that involves swerving to avoid roadkill (bad trades). The important thing is not to crash the car.

By getting rid of trades like BEN quickly, you can sit back and enjoy a trade like GVA (same pattern, bigger target, down in an up market).

Bret,
Nice call on PTR awhile back.

Brian K

Thanks Brian,

I think $145 is a reasonable target still.

This comment has been removed by the author.

SKX Jan #35 call - Price Breakout + volume + secton up trend + low volatility

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  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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