Speaking of Acquisitions...

I just rolled into work and saw tons of questions about what to do in a situation where you have a position in a company that has just been bought out. These types of situations don't occur all that often, so here are a few ideas to consider.

First: Celebrate. Pat yourself on the back. A win like this covers all the years small losses, and then some. There is no skill here to determine this news before it is released, but as luck would have it you have been given a gift. Accept it.

Second: Sell the position.

The question lies in the fact that the offer was for $63 per share, and right now the price is at a discount at $60 per share. However, since the options have all but collapsed down to intrinsic value, there is really no reason to hold these options over the next several months waiting for another few points in the stock.

Here is the last acquisition we traded in front of. Armor Holdings. Notice that the stock has traded in a very narrow range. In fact for a few days after the acquisition, you can see the stock price dropped quite a bit.

Best thing you can do is nod to the trading gods, offering your utmost respect and gratitude and exit the trade. There isn't much more you can do here.

Oh yeah, I don't think I'll get asked the question, but if you are wondering...

No! Never buy a stock after it has been acquired.

After reading your great post from last night over and over, I guess I'm a swing trader at heart.

Something else for me to work on.

GTRC -- So you don't think it's going to $63 any time soon? I'm sitting on 60's and could use those next couple of dollars. I guess pigs get slaughtered.

Will be smart, listen to Jeff, and take the profits.

Hmm...maybe there is hope for me after all.


I was wondering if I should jump into the trade now that the acquisition in complete?

Addicts at large,
Also I have 4 days until I leave to cruise the Baltic. I will have to scale out by next Tuesday. I was thinking that maybe closing all positions before the big meeting tomorrow what do you think?

Is my second question as stupid as the first?


Brett, do you think I could get you to look at SKX for a second? I am wondering about the candle formation today coupled with the volume. My gameplan is out on a close above 29.90. I appreciate it if you can.

This one goes out to the speculators out there. Anyone looking at UA as a play into or over earnings? It looks like they’re catching a bid as a result of Nike’s positive report yesterday and could even break a 3-month down trendline line today. Just curious if anyone has been looking at this.



Trading driven by candle patterns is a recipe for disaster. Just like when you're driving your car and you see it starting to rain, you slow down, but you don't throw your car into park the second your windshield gets wet. Use the candles as confirmation. Since the day isn't over yet, you can't even view that candle as complete, so don't worry about it.

As for me, I see a clear level of new resistance at $30 and rather than get scared, if i am lucky enough to get a retest, i'll double my position.

Anyone else take down BWLD on the bounce today?

I know you asked Brett and not me but I'm going to step out on a limb here and offer my opinion on SKX just to confuse things (hey, why should I be the only one confused by this market?)

I see some serious support going all the way back to November at the exact level of yesterday's close and today's open. In other words 28.5ish. You might be stuck in a range here between my support and Brett's resistance for a while.


You're a comedian, right!?

Honestly the choice on the Fed is completely up to you.

My $0.02, the market is up prior to the meeting. Positive market sentiment...maybe? The market has already figured in the fact that the FOMC is NOT going to cut rates. The only remaining question is whether the Fed will consider inflation a low, med or high risk and based on that, what the prospects are for a rate hike later in the year.

Since some government banks in different countries have been hiking their rates, it makes it easier to raise rates in other countries as well, so that is a risk too.

Having said that, personally I bought into several positions as anticipatory moves somewhat earlier today, which so far are working out. So, based on all of this, I'm not expecting any major problems tomorrow, although anything can happen... Of course I might be wrong and regret my moves today, although I had fun while it lasted!?!

I'll drink a Franziskaner Hefe-Weisse Dunkel (German Dark Beer) tonight to ward off the bad Fed spirits!

Is anyone in the BSC trade. From profits to losses today.

Any thoughts on this one?

This market is really frustrating me


I don't what "The" BSC trade is, but i'm in 2 BSC trades. One was on the breakdown Friday and another is on today's successful retest of resistance. I don't know about profits to losses because I don't have either until I exit the trade.

On a side note, how about that CLF? The heart of a champion. Look at that hammer just over support at $75. I don't know if this is going to catapult the stock higher or delay my exit by a day, but THIS is why i never exit intraday anymore.


Thank you both for the comments.

Brett, this might be a stupid question, but cant today be considered the retest? It has already hit it and backed way off the highs of today.

DG - I do see the support you are talking about back in Oct. there, but this descending triangle breakdown is far too sexy for me not pay some attention to:) I use a time stop of 7 days if it does start going sideways - but I dont think it will be needed.

I remember a coach from the Investools hotline saying that he can come up with an arguement for any side of a trade you showed him. For every 100 people that say this is a great break, you can probably find another hundred saying it is sitting at resistance.

I thought that was pretty interesting because when the ass was dropping out of my account, I found that I was subliminally looking for a reason NOT to get into a trade. It will be interesting to see what happens.

By the way, anyone still in any of the refiners or oil related stocks? Gasoline inventories unexpectedly dropped for the first time in many weeks, so crude oil and the oil related stocks are making their way back up.

I'm holding one position I was going to bail on early in the day until this news came out. Also got into ARD, which has a nice flag breakout today with above average volume.

I had a few heartstopping moments early today with CLF but I guess now I'll stick it out. At least until tomorrow.
Re BSC, gave back all my profits today and then some but will stay in it and keep repeating to myself, 'retest, retest, retest'. It hasn't crossed any lines for me to exit but if the market interprets Uncle Ben's comments tomorrow as bullish, this could go right back up to 150.


Not a bad guesstimate for the Dow early this AM! Good Job!!! Gotta run, wanted congratulate you!!!

Brett, if you like hammers sittin' on 50's. Check out AA.

"this is why I never exit intraday anymore" - Brett

I need to put this in bold print in my rules as I sold CLF this AM. I was on the fence yesterday, and this AM's action pushed me over- duh! Another learning experience I guess.

DG- I'm with you on not wanting to be too active before the Fed announcement, but couldn't resist FCX.

CLB sure looks nice, but I think it boosted too far by the last hour of trading for me.

Thanks for all your help folks.

Raimo, check out TUI :)



I too gave it back today on BSC. A close above $145 is my exit.

TUI...Does not come up..is that the right ticker??

CEG also took away my profits..but still at resistance.

Nice little rally at the end of the day.

Glad I held onto my positions that didn't break support.


Come to think of it, all my puts went against me today!!

Part of trading....

I bought and tried to read "When Genius Failed." Am I missing something there? You have it on your favorits, but I can't seem to get into it or get anything out of it.


All my puts went against me today, except FFH. It finally moved down today. Thank God, I held on CME. Nice move today. We'll see what happens tomorrow to GOOG. I didn't add because it never got it together today. Let's see if it participates tomorrow.


Brett - Wise and accurate chart reading early today! You called it up and considerably and I'll take 91/92 up after the last few days anytime ....

Let's buckle in for tomorrow ... I agreed with Chip (comment above - regarding FOMC and announcement tomorrow). I moved positions all over the place in the last hour so let's see what tomorrow holds ...

However, I'm watching stocks - not the stock market ... I realize more and more everyday, what we do might or might not reflect the market ... Just look at ADM ....

Good evening everyone ...

Congrats Brett. Nice call on the rally!

I was tempted to load up on bullish plays today, but I guess I want to see the bounce with my own eyes. MLM, POT, and FCX all looked good but risk was too big for me at the end of the day.

I'm holding a reduced position in MSM over earnings. Anyone else? Wish me luck.

TUI is trading under the influence.
Sorry, couldn't help myself.

Hey Brett thanks for the explanation.

Tonya how about ORBC and also look at ORB

Jeff and gang one question, It seems that I am correct on most of the trades but it is hard to manage the winners. On the puts do you just let them re test or you take profits when you get to a support level. For instance NYX It could go lower, but I saw resistance yesterday and I took profits, that one I bailed on time, but BSC I saw support and I did not take it because I thought the trend is intact. But such a hard re test frustrates me, and It could go either way.
Same with ATI

Any inputs on this issue?

Brett, I am pretty sure you said you were a Chicago guy. Well nice call on the market. (168 point turnaround) Predicted like a grizzled veteran of the pits. Jesse Livermore had the feel I'm guessing you do too.

Jeff in case you are too busy here is the rumored deal.
Garnett to Phoenix
Stoudemire to Atlanta
Picks 3,11, Pachulia (?) and Anthony Johnson to Minn.


Holy roller coaster batman, I missed the whole day due to an all day meeting. Probably a good thing, not sure I could have stomached the ride. As is, most of my hard stops well below support were hit with the stocks ending up for the day. Man I hate that. Long calls get stopped out at the low and the shorts stopped out at highs. Burned on both ends.

Oh well, price I pay for having a job and trying to minimize risk at the same time. ATR calculations and 3% of support calculations don't work too well on days like today.

When do you get in on a flag pattern. What does anyone see on GME?
Thanks in advance.


that's funny...


Excellent call on the market. I suspect a WM and Buritto magic are back??


You cannot get into that book? How the "smartest" option traders nearly brought down the global economy!

Those guys left a mark on the world, I thought it was pretty interesting. Actually, I loved it. In fact, I recommend it as the only book that documents how to trade spreads for a living.

:) That's why I hate spreads. Same difference.


Reported record quarterly earnings

I Love it, hopefully it reflects tomorrow


I've been waiting for another shot a MLM since I got out premature last time. Nice bounce coming, if not low risk exit. I Likes


To swing or not to swing that is the question?

Oh yeah and on the POT tip, I'm an idiot I was looking at news from last year. Wow it's crazy that my wife lets me even look at this acount. In the words of Homer DOHHHHHHH!

I know this outside of the scope of Options per se, but I was going to enter into the DDUP IPO yesterday and I didn't because I just flat out do not know that game.

However, I do know Information Tech really well and this Data Domain is like time travel! It is the the darling small cap of the street today.

Is there any way you guys can talk me into at least a small position in DDUP. Or am I just too f&*^%#$ late?

Please do tell!

I think it's just over my head. I tried to read a Peter Lynch book, and same thing. I just couldn't follow what all they were talking about.

I just got in "Fooled by Randomness." Hopefully, I'll get something out of it. I thought all the others were good you recommended, and I've learned and used some of the stuff. I amreading O'Neil's CANSLIM book. In fact, I just did a search and a few of the stocks that fit the bill are:

There were others, but they didn't look like something I wanted to trade or not good entry points.

Thanks for all you do. I know you probably get frustrated with the babies in the group, but we are learning (just slowly.)


Thank you for your post early this morning on Swing vs Trend vs Emotional Traders. Unfortunately I still am listed in the Emotional camp. .

Your example (KIM) was spot on.

Using your analysis as a guide, I am in the process of re-reviewing all my trades for the last two months to ascertain why I exited.

I am finding that I left many trades prematurely due to either emotion;(greed, fear, anxiety) or because I had a mechanical stop way too close. Many times I ignored obvious support and resistance levels that I had determined when I entered the trade.

Mia Copa, Mia Copa, Mia Copa.. . .

Well due to paying attention to this Blog, the Market Cast and Divine Intervention I still have not blown up my account...entirely.

Sorry for the long entry. I lurk at this blog a lot during the day, but rarely contribute. This too will change. You and the Addicts have great thing going here.

Sam Hopkins

Long: Smaller Position sizes, STOPS based on ATR and Patience

Short: Emotion, tight Mechanical Stops.

anybody long pcr? thought it was a great bounce off support.

Nice Dynamic Duo Picture on the IT Home Page.

Are you guys telling me that no one has a comment on the DDUP IPO. I like the trend on the 1 yr, ascending trapezious? some sort of exotic bird formation? topping formation>? C'mon traders?

This could be the big one Elizabeth! (Red Foxx for you youngsters)

Tell me I am a freak, but tell me something!


If you want to call me "blog" killer I understand....anyway SNHY making its way down toward another low risk entry.


Hey Addicts,

There is a new picture up for the Market Cast... Jeff & Eric together! Finally.

Arty, Maybe no one answered about the IPO because they left the blog for the evening. I say a new IPO is risky. Look what happened to BX. Just an opinion.



You'll probably get more comments tonight or tomorrow. I would answer you but I don't know anything about that sort of thing. Sorry.


Don't know anything about it. I have enough trouble just keeping up with the stocks right now.


Chris (C&C),

How did the 8th Grade Graduation go? Were all of your efforts appreciated? It's time to visit this 'family' for a while! Hang in there!

Arty, was that you with the one candle breakout on the Mastertalk?
Jeff, hang in there as I am not sure what is harder on you WebEx or the "crazy" questions. Wow, you have to have patience...

Lol that was a pretty rough MT session ... technical difficulties ftw!

I thought of a question I wanted to ask during the last ten minute question ("two questions") but I didn't have the heart afterwards. I just wanted to give Jeff a valium and a pillow.

Thanks for the session Jeff. I appreciate all that you do!

James H.

I have officially registered a complaint with IT. I don't get to listen to masters talk live hardly ever and for the last, I don't know, month, I haven't gotten to listen to any of them because of "technical difficulties". I'm finally fed up enough. Geez. I mean, seriously... why am I paying extra for this when I can't even listen to them or the one I want. Okay, enough ranting. I registered my complaint and it's done. We'll see what happens next.


The whole swing or not to swing thing and I'm not talking about doing that with other people... trading folks! Just trading... Grant seems to think I'm a swing trader or I have tendencies to be like that. I was thinking that's what he is. And yet we both think we're trend traders. Time to re-evaluate?!?! ;-) Maybe we both see something in the other person that we aren't seeing in ourselves. I like trend trading and I don't mind the dips because I feel like I get a better reward in the long run. I'm going to have to think about this some more though. I'm feeling pretty tapped out tonight.

Still in POT.

Still in NYX. Yes, it went back to 75 which seems to be a nice (yes, I love that overused word) area of support but there's also a strong area of support around 77.50. I think it might just re-test some more before it heads down again. I'm shooting for around 70 when it's finished. For me, it didn't violate any of my exits. I'm still up because of when I entered the trade. I know that there were some questions about NYX earlier. Maybe somebody else answered them. I didn't want to go back and re-read everything tonight, sorry. I hope this helps.

I'm probably going to shoot myself tomorrow when I see a few of the trades I exited today go up tomorrow but they very clearly violated my exits even though by the end of the day they were up again. They were still below my support/resistance lines. Oh, well.

I really liked the way FFH looked today. Right on horizontal and trend line support.

I wish I had been around to have read Jeff's post on CLB and the like. I'm sad I missed those goodies.

I guess we'll see what tomorrow afternoon brings. What ever it is, it will be exciting.


(bob) and pam,
Yes that was me with the 1 candle breakout on the MT - seemed like the big guy needed a break.

I know what we are doing is serious business but I have an old saying, "Life is way too long not to have fun!" so let's not take it too seriously.

Jeff wad awesome tonight and incredibly patient. He is mature beyond his years.

How bout that DDUP?


I see a double-top (predicting 9pts in about 5 months) confirmed with a close below $41 on volume *but* also an immediate retest breaking through the new resistance (and also on volume) with the price now approaching another area of resistance around $44.50. Entry if/when price consolidates or curls over.
Does the break through the new resistance at $41
(a) invalidate the double-top pattern
(b) offer a lower risk entry
(c) other, please describe

P.S. Many thanks to Jeff and all you option addicts. I really enjoy the blog and all I learn from the group. I can't read the blog during the day so I catch up after hours.

Hi Bloggers,
Frequent reader, but have been an infrequent poster. Wanting to say a big thanks to Jeff for his great posts and creating this supportive community; especially like the illustration of the swing vs trend trader exits. I'm a swing trader, but secretly want to be a trend trader. LOL A big thanks also to you regular posters for great dialogue, support and trade alerts too.

Guess since I'm on West Coast time too (later hours) I'll take a stab at your question regarding CRM. A potential double top is not a double top until it confirms with a solid break of support. What I see is more of a channel, running from $40/40.50 up to $50. A brief test of support and now bouncing back up. Stock could retest $50 at this point. If it were to break either support or resistance with strong volume, then longer term target of the 9.5 pts of the channel would make a nice trade. Not sure if that helps, but it is another set of eyes.

Thanks Loretta.
I see your point the support wasn't broken decisively.
Thanks for your comments!

All this volume on the blog is cutting into my sleeping time! I don’t get to start reading it until 9-10 PM. OUCH!

Liz, I too am quite disturbed at the MT technical issues. I too don’t get to listen to them live and haven’t been able to listen to a complete recording for at least a month. I don’t like to complain, but, I think you inspired me to file one as well.

I have been training a new employee this week and have not checked my account until the last half hour of the day yesterday and today to exit some trades that violated my trendlines. Today, since my trades are weighted more to the bearish side, my account balance took quite a hit. Overall, my trades are doing real well. Basically, doing exactly what you would expect by watching the price action, knowing my support and resistance areas, and only acting when exit rules are triggered. In the past, watching this intraday account fluctuation would have put my stomach in knots. Yesterday, no stress. Today, no stress. I opened my account at 12:35 PST and exited a trade that went bad, exited one that has July expiration that rebounded past my original target (which is/was my line in the sand) so I exited with a healthy profit. Not as big as half the contracts that I sold when I reached my target, but real nice nonetheless.

To make a long story longer, I have enjoyed the low stress days this week not watching my account jump up and down and will try as hard as I can to not do it in the future.

Recommendation: Close your brokerage account until you plan on entering or exiting trades. Do your stop management in the night time so you don’t feel tempted to peek.

Good luck tomorrow! Enjoy the volatility!


I'm traveling a lot over the next week and a half, so I will be on sporadically. Just know that I will grab as many WM's as possible as I find them!!

Good luck today!

Where you off to? I hope it's some exotic paradise and not business travel or worse, yet, going to do the obligatory family visit.


Well, this didn't work out too well. I got up at 4:30 am to go standby on the 7:00 am flight. Full. So is the 8:30. Guess when i'm flying? 1:15 pm (central). Great timing, eh? Looks like I can sweat the entire flight and scramble in the last 20 minutes of trading to do any damage control necessary. I could have changed my flight Monday but was told standby was wide open all day. Go figure. This is another reason why i love to short the airlines. It gives me a strange sense of comfort as I drive away from the airport in the dark morning hours.

Michelle, I'm going to Chicago for a wedding this weekend. Then I get back Sunday and leave Monday morning for Newport Beach. Family trip, and I'm going to attempt to take my 3 1/2 year old to Disney Land for the first time. And the little one too, but he'll probably just do a lot of waiting around.

anyone else noticing the bid/ask on ONT creeping up this morning? Or the symmetrical triangle wound tighter than Paris Hilton's script for the Larry King interview? Or the Bollinger Bands setting up for the big squeeze? Come on, baby. Don't let me down.

Brett - enjoy Newport Coast ... My wife and I go there annually to a property that we have there ... Sorry you won't be there 3rd week of August ... I'd buy you dinner .... Maybe another time ....

Good look with the air travel ... Shorting them is a nice feeling ....

Good trading today folks as we watch the 'Bernanke effect!' ... Me? I'm going about my day and not even checking this stuff until later in the day ... too much emotion .....


ONT is trading in premarket up .12. What is your target on this one?

Keep your chin up. I know that's frustrating. Hope you have a great flight anyway.
The Disney Land trip should be interesting. I took the kids (5,3,almost 2) to Sea World while my husband had a two-day training course in San Antonio. They had a blast, but it was quite challenging. Hope your wife is going with you to help. But I'm sure you guys will have a good time.
Enjoy. Thanks for all the insight into the market and the witty comments. I forgot, how old is your youngest?


DG - I own stock, so my target are the prior highs set in 1999. Assuming that doesn't happen, i'd be happy withe some of these patterns completing. We've got a triangle right now predicting a move to $4.75 or so. Then a cup and handle that could predict a move to $7.00 or so. One step at a time. If this triangle breaks today, we could be in business big time.

Michelle, the youngest is about 15 months now. I've got a lot of help coming with...a babysitter, a brother-in-law, 2 sisters-in-law and 2 in-laws. So hopefully I'll be blogging from the cabana.

A guy can hope, can't he?

I'd rather manage the babies than all those family memebers. I suppose it depends on what kind of family you have. Hopefully, your family is helpful and easy-to-be around. Not all of us are so lucky (laughter.)


Speaking of shorting the airlines, I finally got in on LCC. I thought 30 looked like nice resistance and a chance to roll over. Yesterday's action was not nice, but I held since it didn't cross my line, but look what happens today, it gaps up like crazy along with the other airlines.

Oh well, let's see how the day plays out. On the plus side, MSM had excellent earnings and so that's paying off nicely.

Don't you just hate when you have a great trade that gets totally offset by another trade that is sucking.

Tim .. JP Morgan upgraded about 6 airlines this AM ... that's most likely the reason for the surge in them.

Just FYI...

Brett, you will love Newport Beach and maybe Disneyland depending on the lines. If you want any pointers on Dland let me know as we are annual pass holders and go all the time with the kids. Newport is about an hour from me but I know meeting people on vacation does not normally fit in. Let me know if you need anything bdheinrich@yahoo.com
I am in meetings again most of the day but was in MSM for that gap and as I have to leave here soon thought I would sell at the gap. So I did at the high but was filled low, really low and not sure why. I had a great trade hit the trend and made nothing so I will have to evaluate this when I am able to later tonight. Sounds like the same result that Tim got as I wanted in LCC but decided not too.
Have a great day in the market everyone. Save trip Brett. Oh and Arty that was too funny!

Good call on CLB. I bought it late yesterday and thought I missed most of the rally. But it is still going.


Thanks, Benton. My LCC still looks okay, but I was wondering why the gap up. Gonna watch GOOG closely. If the market rallies, it's an excellent adding point if you catch it before it zooms up. Right at support.
What say you, Bob?


Have fun Brett! I second what Michelle says. I'd rather manage my children than all of those family members. Strength to you.

I have quite a bit family down in the OC area (they all followed me to California) and if it weren't for the fact that we are getting ready to head up to Canada next week (Thursday) we'd come for a visit. Though, sometimes we bring a whirlwind with us. 3 boys creates a lot of energy.


My slightly preemptive entry into JWN is not paying off but I went into it knowing that I was taking a risk. It was a small one so we'll see what it does by the end of the day and if it doesn't go back down... well, I'm out.

And I'm shooting myself in the foot today. I did warn everybody that I might. Kick boxing will be slightly harder to do but of course two of the stocks I got out of are now back up with force. But I can at least give myself some small comfort as they did violate my exit strategies. Now, I'm just wondering if I needed better strategies.

GLD up. SLV up. EEM up. FXY down. We'll see what the rest of the day brings. I'm going to check and make sure I have all my alerts set up properly and in a little bit I'm going to take a step back.



I say GOOGLEisious...just don't overextend your account....


DG-Are you looking at the 10 year chart for your patterns? Are you talking about what looks like an upside down cup and handle?


Thanks, Bob.
Yeah. I will position size correctly if I decide to pull the trigger. Nice to get the imput.
Was reading the news on Market Watch and looks like the market is set up for a rally today. I am gonna try to step away for a while and keep an eye on it, so as to participate if I can.


I bought an FFH put about a week ago, and that thing just keeps going up. It hasn't hit resistance so I'm still in, but....
What do you see?



Keep an eye on axp if it breaks it will implode

The market is just kind of in a holding pattern.


I personally would not have traded this stock a week ago. I have a support line at about $190, a resistance line at about $206. The stock broke down on 5/10, and I would have expected about a $25pt move down, which it did. There was a lot of volume when it broke through $205, but not so much when it broke through $200...so while $200 could be a resistance area, I think $206 is stronger resistance.

Benton, all,

I saw the story on Bloomberg TV early this AM that JP Morgan was upgrading 4 airlines to "Overweight" (UAUA, LCC, ?, ?) and 2 airlines to "Neutral" (?, ?), all from "Underweight". This has the potential for a lot of buying, so be careful about shorting the airlines.

I wasn't able to write all six down and can't find any reference to it anywhere (except UAUA), even a search on Bloomberg, Google, etc, listing all 6. I think the others were: CAL, DAL, LUV and ??.

I have a short position in LCC, which is up ~$1.50+ in trading this AM, so watch and be ready to bail if they cross your line in the sand.

Otherwise, looks like the market is kind of on hold, waiting for the Fed announcement.

Brett, good call on CMI, got in yesterday as an anticipatory move! Have good trips and lots of fun with the kids!

I would like to be the first to say to say Happy Birthday to Jamie. He will be 48 tommorrow. Jamie is a good friend and co-worker and he introduced me to this great community of option addicts. I have been loitering aroung this blog for about 3 months and it has been very helpful to my trading.

Before I was a leap buyer and just hope for the best. This blog has helped me change the way I trade through position sizing, trading patterns, diversifying in different industries and having both calls and puts in my account.

Though Jamie says I really don't have a plan for each trade (which for the most part is true but I am working on it) and I would be lost without the input of Jeff and some of you guys (especially Brett and Raimo). In spite of all that I have have had wonderful success trading (up over 125% in three months) and I would like to thank you all.


My previous post referring to FFH for Michelle...


Can you believe the 2nd chances the market is giving this am?


Go get em!

Thanks,Bob for your input.
I will hold on and see if I can get a down day and get out, since it's not going the way I had planned.


For the seafood lovers...


Already got WTI and liking what it's doing today.


Could you when you have a free moment, please email me with an explanation of the 2 ATR strategy. I would like to understand that better.



Retest of SBUX too, support at 26.60. This is expected to go down to 23 - 24.

Another hilarious analogy from Brett for me to start my day with. The Paris script, awesome!


C..Can it break out?
T..Trade at end of day?
R..Ripe, ready for the picking
P..Potential $10pt move....

ALB also another good entry point...low risk, at resistance...let's see what happens after the big announcment ......

I have to admit, I am not seeing what WTI is doing.

What is it doing ?


Check out MSM:

Cup and handle
great fundamentals


Brent in San Antonio

WTI - On 5 year chart I see Head and Shoulders approaching neckline.

Brent in San Antonio

Hi Raimo,
I enjoy your witty observations. Questions on ALB & Ctrp...
I have a put on ALB. It broke my perceived resistance yesterday at 38.12 on less than average volume. I may exit before closing today. Are you seeing a potential bounce down from diagonal resistance at 39.14 to continue the put trade or a break above it for a trend change to a call?
Do you see CTRP as a H&S pattern, albeit at a diagonal?
Thanks for your help.


There's also a symmetrical triangle that started around April. It broke out about 3 days ago. It retested yesterday and is slightly moving back downwards today. A continuation pattern to the downside.



I am short on ALB also. I got in on 6/18. I see no resistance at $38.12

My resistance is drawn as follows:

Horiz at $39 ish
Diag, connect from the top of the candle on 5/23 to the top of the candle on 6/6, which places my diag line hitting the top of the wick on 6/22.....

Also, lower highs and lower lows...

My exit is a close above $39

I will not trade before the announcement.
I will not trade before the announcement.
I will not trade before the announcement.
I will not trade before the announcement.

Damn it, FST looks pretty damn good....

Yeah, Step....FST nice....

Raimo, I drew horizontal R at 38.12 because I thought that I saw some consolidation and I was trying to preserve profits. I see your lines much more clearly. This may keep me from exiting too soon. Appreciate your taking the time to help.

WYNN having a re-test of the 89 area which is horizontal resistance. It could really push up to diagnal resistance at 92.5. Anyway, plenty of resistance to look for an entry on a roll-over.


CMI - BOT July $100 Calls 2 days ago. Making a nice move.

I'm getting kinda nervous about this announcement and am thinking I don't want to be short BSC in case the market does take off like a rocket. I can get out here and now at breakeven plus latte. Am I over reacting?

Hi DG:)

I like the looks of BSC quite a bit. If it is making you nervous though you might want to consider letting it go until after the annoucement. I used to get so nervous and I personally would end up making a bad decision and then get angry with myself for not selling when I had a chance. Maybe you should take your coffee:) It will ease your nerves and take the "Gambling" feel away. Just an opinion.

Hi DG, I'm staying in BSC until it closes above what I see as resistance at 144.5. I think that Brett saw it as a good retest yesterday and I'll wait for it to cross my line in the sand. It is nerve-wracking though.

It's a special day when DECK clears $100. Congratulations to the maker of those fUGGly shoes!

Full disclosure: I own a pair of the slippers, but they were a gift.

One other option is that sexy retest on SKX:) A lot cheaper!

FST does look good.

No shoes, just a call on DECK. I'd much rather take the call than the shoes any day.



I am short BSC, and staying short BSC. I will make my decision at the end of the day, not after the announcement. I may let it go to my Diag resistance line which it may jump too (that price would be about $147ish), then see if it bounces and continues down from there....

Don't get rattled after the announcement, let things settle down..

You guys are so funny. It sounds like we are going to a battle zone.
Keep your aim straight, your head down. Don't stop moving. We are taking the hill!!! (laughter.)

I did trade before the announcement. What will be, will be. They were trades that I am basing on the CANSLIM methodology, so I plan on holding them a while.


The thing is, I have to leave to show property at 2:30 latest and won't be back til way after the close. Don't want to use stops in a turbulent situation. I'm out. It ended up costing me 2 lattes for the trade. I still like BSC as a short but if the market rallies like everyone thinks it will, I'll another shot at a better entry tomorrow.

I also want to get out of AMAG but the spread is ridiculous now. I might put in a OCO order on that one and leave it to the option gods to sort out.

A new post and a Poll!

Jeff has some new posts!

Michelle, About the CANSLIM, be careful there. I used to use that methodology and it's okay if that's all you have. But in my opinion the Investools way should be the balance against which all others are judged. Especially since we paid big bucks to learn it. I especially don't like the 8% stop. Bigger losses. The IT 1-3% below support is more conservative and works. What prompted this post was that it scared me when you said you plan on holding the CANSLIM stocks awhile. Support is support and when it breaks it may not come back for quite a while. Jusr be careful.

Have you gone to the new Trading Rooms? Once you finish all the tests in a course, you can go to the Capstone section and get into a special site that has practical application and lots more goodies. I don't know exactly what is there but am almost finished with the tests in Basic Options so will find out soon! There is so much to learn on the IT site that I don't have much time for other methods.


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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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