And down goes ZUMZ. Major top confirmed. Horizontal and strong diagonal trendline support broken. Huge volume. long way down.

Ouch, that was one serious chunk of profits that just evaporated on ESS today not to mention AVB, AIV, etc.

Not how I wanted to start the week. I'll give it until 3:30 p.m. to change its mind. MikeH

Jeff,
Thanks for a plethora of new trades to look at. Does anyone have any spare cash that I could use? I'm all tied up in stuff that's not breaking any trnedlines, but is not making me any money, either. Thanks to AVB it's a crummy day. Otherwise, pretty much neutral. DRYS is turning back up (Brett, I know you'll want to get into it now...) and OSG is continuing it's upward move but no one's buying the calls today. I will bring out my minor in hypnosis and try to find some buyers.

Thanks Jeff for pointing out the support line on AVB. Don't know if I have the intestinal fortitude to watch it re-test $130... I'm sure it'll re-test something... if not my patience.

I'm tired, I'm hungry, and I'm thirsty. I'm off to the local watering establishment here in Halifax (Something like CMG... only tastier) to try to satisfy two of the three cravings.

Does anyone see something other than 2 white boxes on the site?

Maybe I need to try that YouTube search Jeff is talking about.

Brett,

Not withstanding your Avalon Bay Coaster warning, if the price stays approximately where it is now, are you saying that you're staying on the ride even though it certainly has broken even your resistance?

If so, why, because of the Archstone effect or other?! Enquiring minds want to know what's going on in that brainiac of yours! Thanks

Strat,
We got 'em both and listened to them. Many pearls of wisdom.

Chris, did you get the videos on the blog site? I, too, am getting the big white boxes on the blog. The videos aren't on youtube yet and I was able to find one of them on revver (the price pattern one), but not the second.

Strange.

Chip,
Jeff actually went over the trade on (I believe) the second (ie: "this") video. He talks about the $130 support/resistance line (which I see and agree with... just don't know if I can stand to watch it go all the way back there.) It's a balsy move, and I figure I've lost so much now that I may as well let it run to $130 and see where it goes from there. Good thing I bought a small position... although I'm thinking it should have been smaller.

Yah, Tim. I got 'em both. Can't explain why... other than my sparkling personality, charm, and good looks. All of which go a long way with inanimate objects like computers.

Wait a second! Thanks Chris. So Jeff has pointed out AVB support at $130 in one of the videos which I can't get to at work.

This brings up a huge question that I've seen a time or two. It seems that some of the 'seasoned' traders have multiple levels of support/resistance that if a prior one is busted that they look to the next. Doesn't this go counter to the whole process of setting and following rules? Or am I missing a nut in the bigger cog of this machine?! Thanks

I can only see two white boxes. Maybe someone is trying to tell us something? Is there anything we can do to fix it?

Debbie

I can't see any videos either, is there a link to them somewhere else?

Chip,

"seasoned traders" don't use multiple levels of support or resistance. They just use one. They draw a line in the sand. Although they might draw theirs different than others. Thats my guess.

Chip,
They're not so much rules as guidlines. I have to admit there are two very strong areas of support here. One is at $130 and the other is at $125. I have been sitting and analysing this for an hour now and am waffling. The $125 resistance has been smashed on huge volume. Do I wait for $130, or bail out and start somewhere else? I'm waiting until the very tippy top end of the day to see where this one closes out, but I'm starting to sway towards taking my loss, tucking my tail between my legs and sulking off into the sunset. I've lost money on AVB before and I'm starting to lose my sense of humor.

I know this doesn't help at all but it's my pot and I'll stir it up as much as I want.

You can watch the price patterns video on Revver at this address:

http://one.revver.com/watch/284293/flv

Unfortunately, I cannot find the second video anywhere on revver or youtube and it appears many of us are getting big white boxes on the blog itself. Jeff?

Those who can't see the videos.... try coming to Canada. The air is cleaner here... or something.

AVB

I am not in AVB...

However, looking at the trade, it broke down and out on 4/27, re-tested that area on 5/15, and is testing it again today, and perhaps tomorrow. Tomorrow should be interesting.....and maybe a good day to go short..??

Jeff,
As an unseasoned trader I am waffling on AVB. (This makes me an unseasoned waffle. Hold the syrup.) On huge volume like this and with it having taken out the $125 resistance without losing any breath whatsoever... it seems to me that there's more risk in holding than folding.

Hmmmmmm

Chris,

I'll see your one waffle and raise you a 'french toast' (thought you Canuck's would appreciate that humor)!

I'm equally mystified, so Jeff, Brett, etc, any additional light syrup that can be shed on this would be helpful in understanding the $130 Resistance.

Thanks.

hi,

AVB --- if we look at the monthly chart, this could be the end of the down trend on the daily chart. i am using MAs on my charts and i see the price is above the 200ma daily. To me, this has more chance of going up.

Bill T

I don't think AVB is going to close above the 200ma....today, it is acting as resistance, not support. It broke throught the 200ma when it broke out on 4/27...and closed below it. I am glad I am not in the trade, but if this thing rolls over and plays dead, may be a good time to get in, a low risk/reward to the downside...again, tomorrow should be interesting..Todays volume up there, but not enough gas to close above where I have resistance at.

Depending on when I entered the trade, my rules probably would not have been broken, not yet. Close, but no cigar...

I am still in VIP because it has not hit my line in the sand yet....but this is one stock I do not seem to understand the price movements.... at all.

Jamie

OK, so hang me out to dry here, but I bailed on AVB. To me, it's showing signs of strength... a 7% gain on volume that's 1.4 million above average and it closed well above the $125 resistance. I lost a lot more than I like to lose on a single trade on this, but I'm convinced that it's broken it's trend.

This will be a very interesting trade to follow after the fact, for me. This is one that I feel good about getting out of but I really want to watch it after the fact. A good ( but expensive) lesson.

I was in AVB and KIM but closed both of them on Friday ahead of the weekend. AVB had already taken back most of my profits and KIM was nicely profitable but just about at my first target. I wasn't comfortable staying short in a bullish market over a 3-day weekend. I might re-enter KIM if it holds this line. This is exactly where I drew support/resistance when I first entered the trade.

Check out BG - Bunge jumping off a cliff.

Jamie,
Me either. I finally gave up trying to figure it out, sold my options and bought a small stake of stock so I could watch it. If you look at it over the last year, it has made huge gains, but here lately, it keeps coming back to the 95-98 range and doesn't want to move up. It tends to go sideways some, and then it will break out.

Michelle

Great posts the last two days.

Jeff, thanks for the videos!

Option Addicts, thanks for the lively information!!

Steve K.