Recommendation: What a reversal! Did you panic intra-day?

Long: The good

Short: The bad

Yes Jeff, I did panic intra-day on Wednesday & Thursday. Jumped out of the first floor window on Friday! Screwing my head back on today.Thanks for keeping me sane? Ron M

Hello everyone - PFCB looks to be turning back nicely off previous support at $36.


AMAG. Learn it.

Hi Jeff and everyone else,(maybe there is no one else)?

Hello again, sorry go interrupted. I don't contribute here very much, because I'm new to trading and don't know very much, though I'm always reading the posts and learning a lot.
My options trading account is down over 50% in a week and I've had to exit several trades after they broke resistance. I stuck with my rules, and still I lost money. I've stuck with my rules before and made money. expect I will again. Interestingly I feel calm about the situation. I have a very small account but I can risk it without my family going without. I've learned some good things this round about what to do in the future, and things I should not do in the future. I'm in this for the long haul. I will learn, and I will get good.

Does anyone out there have some real good experience as to identifying support levels in cup and handle formations? I'm looking at cns and anss. I honestly don't know how to identify where support is on these formations. I have small positions on both of them with strikes in Sept and Oct.

Thanks for being here Jeff and everyone else.



Great vids as usual thanks alot.

Man, TNX that's crazy, to the moon Alice to the moon

Brett nice call on CAL



All right let's get it going.

Brett, AMAG Desc Tri bereak 10 point move 2 months ...right ? I am thinking Aug at the moneys the Aug 60P. Think the ATM are too much risk ? Or go to the Aug 65P ?


Bonds are getting uuuugly. 10 year 5.26 ...30 year 5.37.

I think everyone is glued to their computer to see who will win the day.
I don't know about you all, but my bear list is growing......


Just some patterns I've seen today

NMX-symmetrical triangle breakout
ITM-was a duoble bottom now bouncing off new support old resistance
MA-nice bounce of diagonal trendline and new support
TAP-maybe good for a put in a day or so coming close to bouncing of resistance



I took the $65's just to be safe.


Good call on AMAG. It is breaking down from its descending triangle with a 11 point move over two months. Volume looks to be good.


Great videos with many potential plays. Your keen eye and willingness to share is very much appreciated. It is helping to mold us into sucessful traders. Thanks again for your time and effort.

Jon P.
OC, Oregon

ACL Breaking Support nice volume
AZZ Breaking support nice volume
MIDD descending triangle

I'm still here but not much to say. This up -n- down has me confused. Some random thoughts:

- Happy that my account is basically unchanged from a week ago.

- Can't help but feel I'm missing some big opportunity on big swing days like today, but I don't know how to trade them for a profit.

- Why are puts not going up as quickly as calls went down?

- Will CAT, MCD, VIP move enough to get out with a small profit before Friday?

- What happened to EXM, TK, ISIL, AIV, CKFR? What can I learn from these losses?

- What next? Lots of ideas to pick from, but I FEEL (I know not a good thing in trading) like I should wait and see for a bit here. Maybe I could buy instead. Or Sell...

Anyone have any answers?


Wow, the bears really step in. I am out of all my bullish positions.

CAL and PSA are left.....


Brett, Jeff

What say you guys on nmx nice break today but it's against market sentiment?

Thanks Grant

I don't love the pattern on NMX. There are better bullish breakouts today if you're looking for them.

In context of these recent highs and lows, it looks to me like there is more to lose than there is to gain.

thanks for the insight
Crap, I missed the bell anyways(getting the kids lunch) so I guess I have all night to look


After listening to the price patterns class this morning, I saw ITG make a big move against my position. Can't get the news why yet, doesn't really matter...price action says all! My options on AIV, EQIX,RYAAY,KMX,PFCB, and PCU doing well. Thanks Jeff and others. Missed the action during the day because of preparing for a birthday party this evening. Must have been wild and I'm glad I didn't witness for I'm still working on that "patience thing."

Had to step out...school awards, end of year picnics with the kids....all tehat cool school stuff!

WOW..not a good day today for the bulls. Hmmm...hope tomorrow does not doink me out of some bullish trades..YIKES.....

Thanks Jeff


So CAL finally made a move after watching it forever, still more room to move. Definitely like the PCU and GRMN is good above 65.I wish I could be on here more......in time all will be good. I hate to say it but my time is so limited I am finding myself using a lot of the information here.Pathetic....but I need to trade, so thanks for all the ideas to everyone. I will return the favor sometime after July.


Looks like a double top on DRYS. 5.5 point move on the way. The market has really helped break the strong water transportation and electric utility industries. I’m sure there are many more strong industries breaking, those are just on my mind.

Jon P, would “OC” be Oregon City?


You sure about that double top on DRYS? I haven't seen a clear break of support yet.


DRYS does look like it is poised to drop below support at 35. Will have to wait for volume for the deciding factor.

By the way "OC" is Oregon City. Are you familiar with the area? It is a great place to live, close to Portland, Mountains and the Coast.

Jon P.
OC, Oregon

MFE is ready to bounce.

Jon P.
OC, Oregon


dropped nearly $50 after hours trading.........

I've been watching REDF for a while. Sitting right at support, had a nice strong day today.

Bob Raimo,

Referring to a previous message on: X, yes, I can see it is still doing what you would expect and/or allow. I have it sitting right on trend support. You're a stronger man than I, to hang in there.

If it breaks back up, I'll watch for a possible re-entry.

CME: I didn't think that after-hours had that much impact on 'during the market' prices, usually volume is low. Do you put a lot of stock in those numbers?

Jon P,

So your from OC huh? Theres another lady on here from Mollala and I'll let Mr. Logan answer for himself. I am from Canby myself, when did you get started in this great hobby?


This hit on CME appears to be a bad trade, I am not sure but, the level II's only showed one quote at that level.

Anyone else see anything different?

Jeff, digging the market cast with the Nuge.. more guitar rock on the cast!


Brett, I’ll be “sure” about the double top on DRYS when it hits $30 in the next month. I have support in the $35.50 range. Unfortunately, today’s volume was average. I think if the $TNX keeps rising and/or if the CPI or PPI aren’t “just right” and the investing world gets spooked a little more, the indices will break support and DRYS should definitively break support as well. It is on the radar is on.

Jon P, I know that Oregon City is in the same county as I live in and that there are a couple of beer distributors there. I live in Rhododendron, if you ski or snowboard on Mt Hood, you know where it is.

Jason, common man, “Mr. Logan” sounds so old. I don’t even like when my kids friends call me Mr. Logan. I’ll have to change my handle, become more incognito.

I agree with Glenn, nice work with Stranglehold on the 'cast!

Great cast! Thanks for the positive comments and helpful info.

Goodmorning! For those that have an interest, ICE has sweetened their bid for the CBOT by 10% more than the CME. The saga continues...


Well, the ICE/BOT news may have a big impact on CME today. But then it again it may not. Listen to the news, react to the chart.

Bob I stopped out of CME AT 510. I'm reconsidering not using mechanical stops for reasons like this. Did anyone notice the charts on Jeffs sunglasses, You could wear them and think your trading all the time. Just kidding!

This comment has been removed by the author.

Or you could wear them and think your trades were going up all the time.

Then we could call them: 'My stocks Rose Colored glasses'...?! Ba-da-bum...couldn't resist! :-)

By the way, the pre-market is showing that JCOM may be coming off on a bounce today, keep those glasses on it!

Option fanatic

On CME, did you get stopped out on a bullish or bearish trade??

Yeah, I don't use hard stops at all. I watch my trades and mkae decisions based on rules...


I got started with IT in November of '06. Did the fast track with my education from IT and started trading "real" money in February of '07. How about you, when did you start with trading or IT?

Canby is close to OC, maybe 10 miles. I have lived here for 18 yrs. It's a nice place to live.


So you live in Rhododendron. I don't ski much but I know where that is. How long have you been trading? I have seen "Katherine" from Mollala post on this blog, so it is good to know that other local people are trading as well.

CG is coiling up in its asc. triangle with 73 as support and 79 as resistance. It may be moving too far into its apex for it to break out. Will have to wait for volume!

Jon P.
OC, Oregon

PEG is at resistance of 85, may be heading down again after breaking its trend a couple weeks ago.

Jon P.
OC, Oregon

CME- now unchanged..wow...
TRMB-bullish, right at Diag support Trndline and support @ $28.50

PAY looks like it's about to give it to us nice and hard this morning. Perhaps it's just a bounce from support and a retest of the neckline.

Jon P., I too started with IT November 2006. I started "live" trading then as well.

Have a good day all!



retesting $27 yet again..

I hope no one has a market order in on AMG at the open.

$126.30 x $463.76



Right at support ($60)..look at the 2 yr chart..Today COULD be a good R/R entry..of course earnings coming up..

Maybe the pundits had it backward. Perhaps the sucker rally was actually yesterday (for the bears).

The 10-year is at a resistance area. The S&P and Dow may have found a support level.

Granted, it's very early in the day, but I think this market still has some strength in it.

Jon P,

Been doing my own investing since about 2000, motley fool and the stansberry report taught me quite a bit about fundamantals and the buy hold world. Then in OCT 06 I went to the promise land of IT. I am doing more "live" trading now, my accounts had to be moved out of TOS becuause of my new job, long story. So I missed out on the last two months of trading because of paper shuffle etc... but I haven't stopped learning during that time. The cast and this blog are increadible at moving you along pretty quick.



I'm with ya. Be great if down the road the 10 yr is forming a double top....of course way to early to think that..but wishful thinking anyway..

Yeah, Brett. What a jump on PAY. Looks like it had some news about landing a deal in China. But interesting how it powered up to the neckline and sputtered out (at least so far).

Bob, Stepped out to meeting,I got stopped on a bullish trade, remember the news on CME bid for the CBOT was confirmed. Rode it up and rode it douwn to my stop. I trend I would like avoid, still trying to instill dicipline to my trading. It's very hard to break old habit's.

Quick question man, I know you are playing SPF to the downside (as am I) and I wanted to know your opinion on it gapping open today. The Market Matrix it is stating that the Virtual Volume will end up being around double what it normally is. Lots of volume on an up day....
Any thoughts would be appreciated.

Good morning. I think. I'm still a bit sleepy. I'm having a hard time opening my eyes.

I looked took a look at the futures market last night and it looked like TNX might go down today. Glad it has.

I am kinda wondering about PAY? What's up with that? I'm not down that much because of when I bought it but it's still kinda sucky. It went right back and touched it's 10 day moving average. It seems to like that one. Looking at the chart it doesn't seem like an unreasonable move for it either. It seems to like to jump, maybe consolidate for a bit and then drop right back down. What say you guys this am? Or is anyone still groggy like me. It is before 7 where I am.

pasadena, ca

I saw the pre-market on PAY and the news and was tempted to bail at the opening. I didn't, partly because I had to leave for an early appointment. Interesting, I had put stops in all my longs last night knowing I wasn't going to be around for the open and thinking the market was going to continue lower. Never figured on news on PAY would be so devastatingly bullish. Now I wait til later.

I view the Virtual Volume like I view Bill O'Reilly...Both make me laugh but are equally useless.

And what do you know? The resistance held.

ITW. asc tri break this am on volume


I am interested to hear what you guys would do on PAY. Let's assume it holds at 35 to the end of the day. A close above 35 was my original exit, so I would be inclined to stay in. But on a major move like this with huge volume, would that influence you to get out and maybe wait to re-enter if it turns back down? Or would you stay in?


Bill O'Reilly is fairly laughable. I have to give you that one. He's got such an angry face half the time.

Doji Girl-

For the most part I wait until the end of the day to trade but I know, sometimes when a stock makes a move like that I want to hit the panic sell button. Brett is right though. It's still holding at resistance.

pasadena, ca

MIDD is breaking below its 120 support. Not much volume yet though. Keep it on your radar for the end of the day.

pasadena, ca

thanks man. the virtual volume is now showing just a normal day. maybe it doesnt deserve much attention the first hour of trading....

COG breakout.

I have a solution that may work for all traders. Make all the trades according to your rules.Take a pr.of gloves sew them to seat of your pants. Then take a long sleeve shirt and sew the cuffs to the gloves. Slide the outfit on. Just a thought! PS Take the outfit off the last hr. of trading and to use the rest room.

Let's hope that PAY pulls an X.
It's stopped at the 30MA.
Might as well wait until the end of the day at this point.

Peter V


We now return to our regularly scheduled downtrend.

STR is making a nice move today.

PCU is making another nice move up today.

Looks like X is trying to get back up.

Did you see MLM today?

FXI is breaking out of it's little channel today.

KOMG is the only put being good to me today.

I'd like to make PAY pay.

Wish MIDD was optionable.

pasadena, ca

It's 8 and my children are still asleep. I can't believe it. Now that I've said that I'm sure they'll come racing out of the bedrooms any moment. This has been a very nice quiet time with just me and the market. Oh yeah and all you bloggers.

pasadena, ca

couple of low risk bear trades

ahs right a trend line
ceg bear flag
str nice bounce

Hello, Jeff calls me one of the ones who lurk in the darkness. Tired of being in the dark and would like to be an active part of this community. I read and follow the blog several times a day, I guess that means I am also an option addict.
I did not get in on the X break-out but unfortunately got in on the PAY breakout. Now I guess I will wait and get out sometime today when it goes down for the one second. HA.

Just to answer Jeff's question from yesterday - I was at Oakmont Country Club watching the world's best golfers get their brains beat in by the treachery that is Oakmont! Fortunately, I picked up GRMN at the open (not the Open)and also ANST for a Put. Can someone shed any light on the action in GNBT over the past 2 days? I have this small spec biotech in my IRA and it's just about doubled in 2 days, but I can't find any news...Back to lurking for me.

Time to close PAY?

Until this point, what makes today’s rally unimpressive is the general lack of volume. I know, I know it’s early.

One exception being PAY of course.

I don't think it is time to sell PAY yet. It will drop below the neckline by the end of the day. It has to or it won't be PAYing anytime soon.

Those with itchy trigger fingers check out Jeff's new post on PAY.

John Logan
Where is the neckline on Pay?
Sorry to be such a newbie.


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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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