Love Calvin!

liz
pasadena, ca

I told myself this morning when I saw the pre-market interest in PAY that it was an OCTOBER trade, but it still hurts to go from plus a nice chunk of change to minus in a gap situation that you couldn't see coming.

Be that as it may, you say you would have no interest in the trade over the 35 'range'. As I type this it is now 35.69 with huge volume. More than the price, it is the volume which is so worrisome to me. I don't think it is so textbook anymore.
Am I wrong?

Doji Girl,

Are you wrong? Who can tell yet?

It is just funny to me to see this stock hesitating to get above that neckline. If you want to see where I drew a line, click on the image to enlarge it.

Seeing that it happened to gap right to this magical numner leads me to believe that, that price in the trend inherently contains some sort of cosmic significance. Almost as if it were the junction point for the entire buyer-seller/market continuum. On the other hand, it could just be an amazing coincidence.

Ahhh, a little sarcasm from the ANGRY TRADER!!

Would you consider "anger" to be "emotional"?

Here's how I view PAY (you don't have to adopt this philosophy):

Think of 50 cent. He gets PAY'd, right? Well Fitty is wearing a huge gold chain around his neck. Now look at the chart and picture Fitty's head and shoulders with that big ass chain on.

Now just make sure that the stock closes beyond that thick gold chain before exiting.

I'm off to get a burrito. Get your speed jackets on.

JK,

Since I have not taken advanced technicals ... yet.

Does this price action present a relatively low risk entry on PAY since it seems to be testing resistance at the cosmically-significant-coincidence line?

Steve in Ft. Lauderdale

Steve,

Yes, but you don't need advanced technicals to tell you that. At any point you spot a trade that is relatively close or at a line in the sand for the stock, it is low risk, as long as you adhere to the line in the sand.

Anger is not a part of my emotion, it's who I am! But it is a part of emotion for everyone else. I am the only one that gets referred to as angry around here! GOT IT!

The question was rhetorical... However, I do understand your lack of “angry” emotion. GOT IT!?!?!?! I cannot relate because I have been compared to George Castanza.

I feel like the 5' 5.5" person I am being schooled by someone in the 6' 7" range. Kind of like my dad schooling me when I was a child. Oh the memories….

By the way, when you are a relatively "grown" man less than 5' 6" tall you can use half inches when talking about your height like when you were a child. “You” in this case would be the general population, not the child that grew so fast that you were measured in feet.

HERE COME THE BEARS!!!! X is not handling it well. PAY is…

John,

Hilarious.

I motion we change your name to Castanza.

All in favor, say "John."

"John"

liz

Constance,

No, the market is a forward looking mechanism. The reason AAPL is coming off it's all time highs is because the market has already priced it in.

And then some.

I smell a top sooner than later.

Oops...wrong conversation.

Jeff,

Nice posts today! In fact X and PAY perfect examples for learning to stay in trades. If they went straight up or down nothing would be learned (although making a quick gain is definitely nice).

Bretts comment on the fat gold chain analogy was good to indicate support/resistance was a zone.

So along those lines, here is a suggestion. If may help some people to set the default width of your trendlines to be nice and FAT. This may help to illustrate that support/resistance is a zone :)

John

Jeff,
If one happened to own a lot of June 80 puts in IYR would it be safe to say the aforementoned someone didn't buy enough time? be angry but you have staked your flag in that camp. What say?
Cheers,
Arty

Jeff and Addicts,

Similar to Steve's question...are you more inclined to treat a close *above* of a confirmed head-n-shoulders neckline as
(a) pattern failure (John J. Murphy suggests this in Technical Analysis of the Financial Markets),
(b) a low risk entry (same as a retest to the neckline), or
(c) something else?

Arty,

With a short dated option, this might be a good place to take a profit on IYR, since it seems to react to this price as support.