It's tough to come back from great weekends, unless you happen to be focused on taking withdrawals out of the market, which I hope you are all able to do this week. There are a tremendous amount of great trades floating around out there, sink your teeth into a few today.

While I work through managing my watchlists this morning, I had a few things come across my plate I will share with the group.

GMCR: The stock is blasting off trend support today in what could be considered a flag pattern. The pattern carries a 10 point price target, and support offers a definitive exit here. Great risk reward. No options on this guy, but if there were, it would be easy to go out the money here. Any stock traders out there?

SLB: Great trendline support that the stock rallied off today. If you see this as a flag pattern, then this would mean you have about a 7 point price target. Taking a trade in anticipation of this is great in the sense that you are much closer to support, which leads to less risk on the table for more of that big potential reward.

Recommendation: Anyone else got any good looking set-ups out there?
Long: GMCR & SLB

I really like CYMI to the bear side. Action point for me will be a close below about 39.45 today. SIMO seems to be rolling over also

Tom DeGroodt

Hello Hello Hello Hello

I can hear my echoooooo. A quite monday to begin the week.

Hopelessly Addicted
Christine Lumia

KMGB exploded today, I had a small position. DOH!

I like the entry point on VIP.

Fellow addicts,
I am watching

SSYS- coiling up
MR- med play
CVH- getting closer to breaking out of an ascending triangle.


How about OMNI for a breakout of a cup and handle? Also on a longer term it looks close to be the breakout of an ascending triangle.



I don't see a cup or handle, but I see the triangle that broke several weeks ago. I wouldn't take this trade at resistance on the 1 yr chart, or on the 5yr due to the late entry.

Hope that helps.

BTU is providing the same entry as slb, plus cup and handle.

Thanks for all of the contributions. I love this blog.

Just bought 300 shares of GMCR - Thanks Jeff

Here are a few I'm keeping an eye on:

CTRP (china - do I dare)

Brent in San Antonio


That was easy! I didn't even have to work into my sales pitch!


Tommorow VIP breaks the $105 resistance/ascending triangle. Book it.


FSLR is acting nicely forming an ascending triangle calling for a 10 point move

hey jeff,

thanks for sharing.

OII looks to be confirming a break above $50 highs

i like

MEA - small cap
CFC - cup handle, bull flag, support at 39
PMI - break 50
BA - retest 100



Care to enlighten us on your VIP Intel? I do have a Clearance! Thanks

That helped with OMNI I have a question on entry on breakout like BHI today. I know that we want to wait til the end of the day to enter. Would you still enter if on the day of the breakout the stock has moved so far fro the resistance or do you wait for a possible retest to get in at a better risk/ reward point?


I was looking at its price action lately and it seems to be using the 20DMA as a springboard. Also, (and I do realize there is nothing to this), it has been alternating up and down days for the past 10 trading sessions. For the most part, volume is stronger on the up days than the down. Man, I am just trying to stay optimistic here:) It is nothing more than a feeling and I dont think you are supposed to trade feelings:) Take care.


Did anyone jump on those ALK puts? or any other airline for that matter?



You cant ask have to look at the risk reward of the trade at that point. Each scenario will be different.

Hello all,

Long time..., first time...

Jeff, thanks for the great forum. You've fostered quite the breeding ground here.

My name is Hans. I've been studying with Investools since September, paper trading the entire time, and reading every investment coaching book I can find, but not until I started frequenting your blog, did I really find the trading style that fits me. I must admit, I am an option addict.

I finally made the jump into the deep end of live trading about 10 days ago. Now I can't stop. My account is up 25% on 7 winners since then. And I literally couldn't sleep this weekend because I kept waking up thinking about finding the next trade. Anyone else experience that? I'm glad I have this place to come and satiate my addiction.

For now, I'll contribute as best I can (thanks to everyone who does), but like any other newbie, I'm more of a sponge right now, than a fountain.

Short - PAY, TSL, KMX

Nice to meet you all.



Aw shucks, I was hoping you had good intel on VIP! Thanks, just wanted to make sure I wasn't missing anything.

Personally, especially with VIP lately, I don't put a lot of stock (pardon the expression) in those movements. Having said that, if it does make a move above $105 tomorrow, I'll pay more attention to them!

I do think it has been consolidating in its asc triangle and is preparing for a break to the's just a matter of time! I'm thinking it may have run out of much of the steam it had last year, so hopefully it will pick up that pace again.

I still trade stocks. Those are nice plays to have to even out the erratic options. GMCR looks good. SLB, nice support. I love this blog. Been getting our house ready to sell all weekend and missed my study time this weekend, but this blog gave me some stocks to analyze (what I love doing.)
Gonna have to wait to see if KIM breaks down before I take that trade again.

Randall and Michelle


Is to late to buy puts on UAUA?

Thanks for any feedback.

I will believe VIP break when I see it. I have a small amount of stock in VIP, but it can't seem to break out and stay out of the 98-102ish range.


anybody else get into xto last week when jeff highlighted it,,up more than 5% today,,,thanks jeff


I hope not (laughter) because I bought some. Look at that volume. It doesn't have resistance for another 3 points, then it should really go.


Can't agree more, I've had July Calls since the beginning of April when it was at about $97 and since then it has stalled, most recently at $104 and doesn't seem to want to move. I'm still hopeful, although realistic and we'll just have to wait and see.

Boy that SNHY is the gift that keeps on giving to the stock traders out there!

Shout out to OII and GMCR!


I bought some puts on CAL on Friday. I saw that it was at resistance, it had peaked above that resistance line right before earnings, but has since been using and moving up to the resistance line and dropping. It did this on Friday and I jumped aboard for the ride down.

Jon P.
OC, Oregon

What is going on with ITW, got in a couple weeks ago with some calls, Does it go higher?? Hold or Sell?

I sold my SNHY on Feb 22nd for $22.45. I was in it for months and it just wanted to move sideways. I flog myself daily for this mistake.

Most of the mistakes I've made have to do with losing my patience.


Short: Patience (but I'm working on it)

Brent in San Antonio


What was your exit plan?

Don't sell until it breaks the trend line or rallies to 57 which I think will be new resistence unless it breaks down on the way there....What do you think?

I used this as an example of an ascending triangle a week or two ago, not sure if this is where it came from, however, when a stock breaks its resistance level, this same level should act as new support. Since it failed only a few days later, this is when you want to try to exit the trade. This is when the pattern is considered to have "failed."

Hope this helps.

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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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