Jeff,
Great looking analysis! Thanks. 2 Quick questions while on lunch break:

1. I'm planning on paper trading some FLAG patterns. I think you wait for the spike up to confirm before entering a flag pattern? For someone like me that works full-time how should that approach be different if I can't monitor the stock during the day and make trades?

2. X - made the trade this morning and am surprised to see that although the stock price is higher the option ask is lower. Obviously due to Implied Volatility, this is the first time though that I've seen something like this not around earnings. Is there any way to minimize this IV in a trade?

Gary

I know we don't really need more trades to look at but here are some more I have been following.

BNI,UNP,CHD-- Flag breakouts.
CENX - Ascending Triangle with possible breakout today.
CUZ - good support bounce likely with hammer forming today.
JBHT - Reaching 20 year high today.
CMI-Cup and Handle?

Thanks for the watchlists this week Jeff!

Sean M.
California

Jeff

Great class this morning and watchlist today thanks, most of your selections are already off to the races !

I have a few questions with regard to trading breakouts and was hoping you could do a post on the blog or perhaps even part of a Master Talk class at a future date when you get the time.

I rang the coach hot-line a few times on this one but seem to get different answers so I am guessing there are no hard and fast rules on what break outs are and how to trade them. However I was hoping to get your insight into what you look for in a breakout trade and how you spot them to begin with.

Is there a particular type of set up that you like that produces better results more often. For example, do you only trade new 52 week highs? I know that you also look in the Chart toppers for them, does this mean you are looking for trades that have made large one day moves?


Is there a particular type of break-out that you will not trade, e.g if ithe breakout is more than 10% on the breakout day?

When there is no overhead resistance, or no price pattern to work from, how do you fix a target price, or do you have a target in these instances?

Sorry to be so long winded and inundate you with these questions, as I know you are busy planning for Orlando. Perhaps you could do a post on trading breakouts when you get back from Florida?

Thanks again for all your help.

Ken

Jeff,

You have done a great job at analysis once again. Thanks for tips and watchlist.

- Corey