Getting Started

I am just rolling into the office, and getting settled for the day. Looks like the market is holding onto a few early gains, but nothing prolific. I see a lot of good looking set-ups, so this normally means it is going to be a great week for a short term trader. Sweet.

Feel free to leave a few ideas behind, hope everyone had a great weekend.

CRS is looking great, I do not know why this is a late riser after earnings, they had great reports and nothing happened, I have been holding on to a losing trade until today, I love when that happens. I think there is a rumor about a buy out of a company within. Who knows, moral to the story, be flexible on the stops.

SBS is moving great outside the ascending triangle prior to earnings.

MLM - right on the 30 day avg which it has bounced off from about 6 times since Oct. MikeH

price pattern addicts...JBX

I am sooo excited !!! I got a wireless card for the laptop for mother's day, which means I can "work" on my lunchbreak !!!
I have not had a chance to read all the commnets, so forgive me if this is duplicate information...CAM breaking out a small ascending triangle (volume??) and MLM bouncing off diagonal trendline.

Thanks for JBX

Tonya, welcome to the world of wireless (normally slow though). Thanks for the ideas here today all. On TSO looks like what was seen as good news (buying Shell properties) this morning now is not. Wow, made a big change from being up so nice this morning.

For those who missed the breakout...RIMM is retesting today, tomorrow may be a good entry day....keep it on the radar....well time to go back to back around 11pm

Keep CAL on your watch list. It is approaching the neckline of its head and shoulders pattern.


that may look like a head and shoulders the same way a 6 may look like a 9 when viewed from a different angle.

Brett, you're funny. Thoughts on ME? Too extended or a good entry? Not sure how I'd calculate a target price. Also, TAM. Does the industry group and big chart rank exclude it? I'm thinking if it breaks 29 it may easily go to 33. Thoughts...? Thanks as always.

Hey Tonya, but now you have to make an extra $60/month just to break even ;-)

Now, just to be fair, John Murphy does list the head and shoulders as a potential continuation pattern. You've seen it on BWLD to the upside, so i guess i don't see why it couldn't appear on CAL to the downside.


Thoughts on you? I think you're a good guy.

Just kidding. I think ME is consolidating.

I've traded TAM before and don't like it. It has a $30 target from the triangle break from last wednesday.


I'm assuming you make that comment because the H & S reversal pattern is at the top of an uptrend rather where CAL is right now.

I like the analogy.

Thoughts on MSM? I am being patient as the price has moved down to sideways since my entry on 5/2. Today the price is testing my diagonal support line drawn from 3/27. The volume is light and is sitting on the 30 day MA. If I am only looking at price, then this stock hasn't done anything significant to warrant an exit...Right? I am getting anxious to throw my money into a different trade. Thanks for any comments.


best marketcast advice EVER:

"everyone should get long some Vimpel."

Amy, do you have time stops in your rules? If so if this is beyond your time stop and not doing what you that thought...
I am long VIP again.


Good point on CAL. It should be at the top of the trend for a reliable head and shoulders. As my kids say, " my bad".

Yes, I do have time stops in my rules, but I also tend to exit trades early. I am trying to be patient and allow the trade to work. How do others balance time and patience when trading a stock not moving?

Amy, I have hired a 'little person' to sit on my shelf. When I try to exit a trade early, he hops down and bops me on the head with a mallet. Then, he kicks me in the groin and hops back on the shelf.

That usually does it for me.

Amy, I am not the best to get experience/advice from on this but will give it a shot. If the trade does not performing the way I planned in the time I planned and there are better trades to move my money to then I move on. I had X move on without me today as I had a ATR stop that somehow got triggered while I was not here. Looks like a nice support bounce entry point though.

I am not sure if my AKAM puts will do for this expiration but it should be a great short

Try it out bouncing of resistance

Jeff great call, what else to expect from you

Thanks, Brett. You made me smile. Is that your way of telling me to stay patient and exit if the trade fails to hold support? I guess I need to hire a "little person".


May I have the phone number of the little person, I got stopped out of PCP and have a very sore nether region.

Anyone look at VMED for a potential resistance bounce?


Brett, care to rent him out or tell us where you got him?

Man, I'm getting pounded today and it's not with the diversification and position size mantra. The only thing that seems to be really saving me right now is PLCE. And my position in EEP & VOLV.

pasadena, ca

Despite my earlier post, I'm really looking for a bearish position, what do we think of MPEL?

For me I do not play stocks trading under $20 bearishly (if that is a word)

Is anybody still in PSA puts besides me? Is it time to throw in the towel or should I continue to sit on my hands?

Doji Girl

Doji Girl,

Just because the stock is up a buck on average volume?

Apparently she gets dibs on Bretts "little person."

Doji girl:
I was on PSA until today. I had to let go because of may expiration but if it continues past support I am jumping back in.

I should have planned for the bounce but I moved my line on my chart and did not see it until too late.
If you have time I would give it a little more time to see how strong support is

Doji Girl,

Aren't you the one who bailed on AKAM because you didn't like the dojis? Stick to the patterns and the price/volume action. Forget candles, forget emotion, forget daily blips.

And to settle this whole 'head-and-shoulders' debate, please take a look at THQI today.

Thanks, and good day.

Because of that and the fact that it seems stuck at this level of support.
But also because I am a wuss and am having a terrible day in all my other positions. (bearish stocks going up, bullish ones going down).
Maybe I need a little person of my own since I will probably need it more than Brett would be willing to lend.


SBUX for a bearish play. Possible double top broken today. Look at a multi year chart.


I am in PSA too and it looks fine to me - Yes I would have said that even if Jeff had not already posted. Strange day in my account not getting pounded just was up big this morning and now around even. I thought one of the benefits of Jeff's blog was that we all could act as each other's "little person." No kicking now...

I'm gettin hammered too, but not by the "little person"...nothing is busting support or resistance appropriately...guess just need to suck it up today and hope for a better day tomorrow.

I agree EEP and VIP keeping me from totally sinking or at least somewhat afloat, although taking on water faster than I like...

Hopefully there are no icebergs ahead!

With the acquisition by TSO of the Shell assets being completed today, can we expect a recovery near-term...Opinion/perspective?

What say everyone on CME?? I am curious everyone else is playing this...

NFX...nice move today,....

Bob R,

What if you are the only one playing it? Will this affect your trade?

Has this triggered an exit today or something? Why the sense of urgency?

BTW, if you are looking for comfort, I am short.

I got out of CME puts on Friday. Are you bullish or bearish?
I would not touch this with a 10 meter cattle prod (we have some of those here in Iowa). Shell shocked.

JBX finally broke out today. Jeff, were you in CA this weekend supporting the cause? Nice move on it. Didn't end with the strongest candle, but you can't always have everything!

Brett, your little person has an auntie and she is sitting on my shelf... kept me from trading intraday today... but geez, the bruises!


Good point...

However I am not in CME...I was just curious as there was chatter of folks buying calls on Friday, so I was just curious.

I am bearish on it though....


I am bullish on CME. It still looks okay to me. I think this is a news driven stock at this point, so it could be all over the board. I agree with Jeff and some of the others that it probably is one to not play unless you are okay with the risk.

Randall and Michelle


Depending on when I purchased my puts and what my time frame was and what my target was, more than likely I'd still be in the trade (put)..It broke out of a sym triangle on 4/24 and retested it today (545 level) the pattern has not failed yet and it is still a good trade. Heck, I may pick some puts up myself...from where it is now a nice move south..

Ladd, why?

Hi JD.
Why what? why did I get out of CME?
Or why wouldn't I touch it with a 10 Meter cattle prod?

Either way, my answer would be because on Friday afternoon, (sitting at BWLD enjoying an ice cold Miller lite) evaluating my situation on CME after a news related gap up, then giving a lot of this gap up back, then rallying again, on big volume and the weekend staring me in the face, on such a volatile stock, I felt better watching from the sidelines.
With the symm triangle break I have a line drawn just north of $550ish as resistance. After today's action it would be easy for me to say I should of just waited this out, but with what I mentioned above I did not want to wait, I wanted to watch this pan out from the sidelines.

Not perfect here by any means and any comments on this short story I just published are welcomed.

I'm probably the shortest one here and supposedly I carry and attitude… Good thing I wasn’t reading the blog today or else I would be sending out my resume. Chris (and Catherine) do you have any hammers to spare?

Amy, I too entered MSM on 5/2 and I got out of MSM on Friday because it closed four straight days outside my trend line. Although the stock price was slightly higher than where I entered, I ended up with a small loss. I was a little aggressive on this because since the beginning of March the stock has moved up pretty quickly on bounces. I chose a two week target of $52. I was in it for seven trading days and didn’t like the direction it was heading.

Since you seem to have a different line than I, if you email me your prophet chart I can reply and attach mine to give you my little perspective - If you don’t want to send your email to some short shelf sitting dude with a mallet, I understand.

Sorry Ladd, didn't realize how out of context that was. Why do you not make bearish trades on stocks trading for less than $20? I hadn't heard a rule like that before and was curious to the rationale.


JD, very funny. here you were asking me about one thing and I respond to CME and write a freakin book. Comedy.

with bearish plays under $20 I figure the stock can only move to $0. In MPEL case it has 15 points to move to hit zero. Who knows if it will get there? I like to find stocks that are higher priced (like AVB) that could move much greater amounts.

That is my $.02. What about the rest of you, what are your thoughts?


You guys are too funny.
Just reading watching my kids chase each other on their stick ponies (5 years and 3 years.)

Randall and Michelle

nice trend, waiting for flag break. Would anyone else consider this a flag starting early March?

To me it looks like MSM is at a good entry point right now, maybe you got into the trade a little early. Volume is too low for my liking, but if i was looking for an entry point, i would probably get in on the next up day.
I know how you feel about bailing on trades early, I have gotten much better w/ all the support on the blog, but i must confess that i did bail on ISIL today, it was just getting too "stale" for me. (Brett, I can hear you now, go ahead and kick me in the butt and get it over with). I just felt like I could be making my $$ work harder for me somewhere else. I had a very small time decay loss, the trend line was never broken, but the slow moving, lower priced stocks just drive me crazy.....I think I will add a rule to protect me from trading this stuff "when the chart is broken down into $1 increments, stay away!!"
Well I hope you make the right decision you will know soon, if it dips below the 30 dma

yes, yes $60 is a small price to pay to feel dad and brother wanted me to move back to upstate new york and i told them i could not b/c they do not have high speed internet, can't stand to be so "disconnected"!!! they just laugh at did a girl who can could shoot, fish, hike, canoe, shoot bow, etc...become such a "city slicker"?? anyways enough about you really want to go bearish on a $15 stock, I think there has gotta be something better out there.

Thanks for reminding me about EEP, i had almost forgotten b/c i missed the entry, maybe if/when it plows thru $61 i will get in on the 52 wk breakout (all time breakout)

Doji grl
PSA = still in, hang in there

I don't have much new to offer to the table, except may not be the perfect entry point, but definitely something to keep on the radar....

Hope everyone has a good evening, well its morning now, good night

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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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