Recommendation: Proceed with caution

As the popularity of this blog grows, there are a lot of newbies (to this specific strategy) joining, which includes me.

Those who are more experienced in pattern trading, can you please recommend/share books, sites, etc. that you found to be helpful in honing your skill set to trade this strategy?

Much appreciated!!


Maybe the BLOG is broken? Where is everyone? Maybe I'm the only one that didn't "take the money and run."
Glad that I was able to exit some bad trades today without getting crushed. Thanks for the updates!
This morning I posted on yesterday's blog a few stocks I'm also watching.


Thanks for your comments Jeff and Gary. The market is on the move...I wonder for how long or far.

I have waited for this rally, but now that the last hour of trading is here...I feel like I am chasing my tail. The stocks in my watchlist are bouncing quite nicely, but now they are pushing past my risk tolerance.

Any suggestions?


MNST and PCAR are also bouncing.

DHI on the video you said it was a $4.5 H&S but it really was a $3.50 one ($27.50 to $31.00) so it has actually hit your target as it is at exactly $24 or $3.50 below the breakout. After missing your class in Orlando (and worse yet... telling you we were going to miss it) I'm reluctant to correct you. But there you go. It helps confirm your genius by proving that it hit your target.

You're welcome.

Chris and Catherine
We really listen
(Hey, maybe that'll be our motto.)

We must have posted at exactly the same time. PCAR looks to me like it's right on it's support line in the bullish channel. I'd be looking at this as a bullish trade if I had any confidence that the market is going to move in that direction... or even sideways. But I don't.

Long: Mexico, tequila, food

Short: Stocks, options, thinking.

Chris and Catherine

C & C,

Have a wonderful time in the sun. I hope your snowmen don't miss you too much.

I am in PCAR. I am conservative with my trades right now. I can only control my risk, so that is what I will do. The rest is only mine to react too.


VDSI. potential bull flag with $3 price target. have no idea where the mkt is going so just trying to trade what i see


Hi Jeff,

Your post today says that it was posted at 11:17am, however I hit "refresh" all day long and it didn't show up until right as the market was about to close. It happens like this all the time where I want to take a trade that you show, but by the time I see it, it is too late to take the trade, thus keeping me from being able to participate in some big winners. Does this happen to anyone else?

Jeff...I've seen and heard of trading curbs for the downside but why would the NYSE institute upside trading curbs??? Thanks.


I saw the posting this morning. Can't remember the time, but it was probably around 11:15 or so. I find "refresh" doesn't work (unless it involves a liquid...) but re-loading the blog does. Hope this helps.
Thanks Amy.... good luck during the week we're away. We have found that you have to find what works best for you. I thought I'd found it... then I lost it. Keep smilin'.
Chris and Catherine


What are trading curbs?

Valerie W

I'm pretty bearish on the market right now. I suppose technically we haven't confirmed a down trend. We've made a much lower low but really haven't gotten that lower high yet since we've gone pretty much straight down! I'm waiting to buy puts after the market rallies a bit and then turns down. That is what I expect anyway.
However I did find one trade that appears to be at a good entry point right now for a put play. MGM

MGM looks to have broken support yesterday and then retested today with volume decreasing. Looks like an entry tomorrow morning unless the market starts off strong.

Anyone else like this trade?

I got pretty beaten up on my VIP call options last week which I had to exit on that Tuesday at around $78.50. Now VIP's at $83.50. That was not fun!

Valerie W

Valerie W

Valerie W and Jeff,

I guess I answered my own question with this link. It explains trading curbs well.



i like the MGM trade b/c it has some evident overhead resistance and no clear support until 57 or so. good risk reward. i might jump in too

IIG has been in a steady downtrend hitting its 30 day as resistance. high short interest on the stock too


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About me

  • 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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