AMZN held support of last week's lows, formed a mini inverted H&S on the 1 minute timeframe, setting up a scalp long. I took a partial at full extension. Price then retraced back to base of initial entry for a successful retest of the base. Added back full share size on break of next mini-base. Exit at 200% of initial setup. Final scalp into the close.
STEC basing at $14.20. Last week's thrust into resistance followed by 2 inside bars, looks good. Next resistance level $16.00, followed by $18.00.
Picked up some POT on test of daily 200 SMA. The sector has corrected and I'm looking for a bounce back up to the FIB retracement zone of last leg down.
Using the daily timeframe as your anchor, find a few good setups for the next day. RIMM formed a mini C&H pattern on the daily and fired off long early in the session as depicted below on the 15 minute timeframe.
GOOG was a HCPG pick from last night's news letter.
It fired off on the open, but I waited for price to consolidate the early move. Eventually, GOOG formed a bullish flag on the 15 min. for a full extension.
We aren't overbought yet as depicted by McClellan oscillator below. Keep watch of open interest as this may signal a correction when the reading becomes too bullish.
BIDU and AMZN provided leadership today as internet stocks move into a mini base.
The chatter in pre-market was that the market was anticipating good jobs data next week and would likely continue to rally into those numbers. The first half of the session supported that idea, but early afternoon was hampered by another weak auction and more headlines out of Europe regarding aid to Greece which popped the greenback and melted the markets. At the end of day we have a lot of shooting stars and bearing engulfing sticks.
POT attempted to BO of a solid base on the open but faltered. This was followed by choppy trade and a series of lower highs and lower lows, eventually setting a low risk short on the 5 minute timeframe below.
A stronger dollar, weak data, and a weak 5 yr. auction all contributed to backtracking in stocks.
GLD looks poised to retest its trendline on dollar strength.
A mixed start on Tuesday with choppy base building persisting well into the afternoon before a late day run to fresh new 52-wk and recovery highs. Thus Monday's retest of the base was successful and we rally on. The lack of volume implies few bears ie. no short squeezes as the bulls party on.
PRGO opened with a wide gap and immediately took out the ORH. Volume = momentum on these wide gaps and since PRGO's volume is strong, we want to get in.
Since there's no identifiable chart pattern, move from 15 min. to 5 minute timeframe to find a suitable entry point. Price consolidated in a narrow range close to 5 EMA so I entered long. Place Fibs. from previous day - late day lows ie. beginning of last leg up - to ORH and target a Trader-X style extension.
As long as the stock continues to carve out higher highs and higher lows, we can be hopeful of further extensions. After exiting the initial trade, we wait to see how price consolidates. Price consolidates in a narrow range on low volume (price/volume contraction ahead of expansion).
