A most interesting day, indeed! FAZ popped at the open, traced out a range, feinted a false breakout like a mongoose taunting a cobra, then puked massively to fill the gap. This is why I love trading. You never know what is going to happen next. Personally I think today's action was the b and first half of the c wave of wave 2 inside III. For clarification, wave III on the daily is what I'm stalking. Make sense? Worth repeating!
Serious bear carnage today! I may have miscalculated FAZ. If it goes any lower it will be off my radar. Wave 2 is not allowed to go below wave 1 and that is what we're seeing here. In real markets they can sometimes exceed these limits slightly but the confidence factor on this potential trade setup is getting lower by the hour. Here is why waiting for the third wave to appear before putting any of your hard earned capital at risk is the safest way I have ever found to trade.
What ever happened to RPRX? Two days after selling AAPL while waiting for funds to settle, it lit up like a roman candle. 17% profit potential at roughly 5R was there for anyone with eyes to see.
Here was BWS exploding through resistance on Friday while I was perplexed by FAZ. This was one of my top gainers / daytrade examples from a few pages back. It counts out as a C wave breakout, which itself is a third wave. This will be on my short list of candidates for Monday.
Sold BBY @ 23.33. There's probably a little chunk of this day-tail left but I got my lunch money out of it. It took a while to light off so I'm not taking any chances.
Here's BBY after the day's action. One thing long options taught me was to take profits like a ninja. Stocks give you a little more warning, but cashing out on a spike is not very scientific. How do you define a spike, mathematically? I still don't know. I just get this tingling feeling in my spidey senses that the party might be getting a bit out of hand. Reminds me of my college days....... there were always certain types of people who would start acting out, right before the cops showed up. Same thing with price action.
BWS & RPRX putting in bull flags. These three examples came from the top gainers list, somewhere along the line.
FAZ is now temporarily off the radar. There is still a possible higher order third wave setup on the daily chart, but not the hourly. Now the real question is - will the general market keep going up or is it just tracing out a bear flag? I guess it all depends on the Central Liquidity Providers. :eek: