Technical Picture - Bears Own It

A gap down open followed by broad based selling. Actually, I was caught slightly off guard as I was expecting this sell-off to happen on tomorrow's jobs data.

The VIX had been forming a bullish flag and today's selling was a good opportunity to trade VXX.


TLT formed a bullish flag (gap is the flag pole).

AGN, courtesy of the Trade-Ideas momentum scan, formed a bearish tower top as it struggled to hold R1 weekly pivot.

Range Trading

The first chart is X and it was one of the weakest WL stocks Friday, setting up a short when it couldn't hold the R-zone of the PDL to ORH as support.

Today X printed an IB in the upper shadow of the OB, green on green, for a target trade back up to Friday's high. It then carved out a tower top reversal pattern for a short back to the R-zone.

SU and CNQ set up shorting opps on Friday after Thursday's big rally. I was hoping to go from top of channel to lower channel, but prices stalled.

Today they opened weak but found support on the lower channel and rallied back to test Friday's highs. SU carved out a morning star reversal for a long entry and CNQ IB. After testing Friday's highs, we had shorting opps.

So, we were long SU and CNQ Thursday, short Friday, long and short today - making the same money over and over. Tomorrow, I expect the channel to break.

I added ECA to the short oil list as it extended to the 50% Fib. level of the ORL to PDH.


MS, a long on Friday, should have been shorted on a trendline break, but I missed it. Eventually, it carved out a bear flag for a quick short.

Bearish Tower Top Reversal Pattern - Amgen, Inc. (Public, NASDAQ:AMGN)

Steve Nison on Tower Tops (TT):

The TT unfolds at high price levels. During a rally there's a lull after one or more green candles. Then one or more red candles emerge. This creates a top with green and red tower on either side smaller sticks. So WRBs on the way up and on the way down. The opposite of TT is the tower bottom.

AMGN rallied up to the RH from last week, carved out a tower top reversal pattern. Short as price breaks support. The characteristics of the TT pattern usually result in a fast move.

CELG was a sympathy play.

JOYG carved out a TT at the 50% FE of the PDL to the PDH. BUCY was the sympathy play.

B&B long on AMZN 1:30 15 min. bar failed. Markets were somewhat extended after yesterday's big move.