Today I did 2 buys and 3 sells in the #1 stock of the day, VTL. Very pleased with my focus staying with that one, 65% on the last sale. I will go thru that whole thing later. And again, READINESS-TO-MOVE. In the trade for about 2 hours.
In my last stock market update on 3/28, (gold and bonds were updated the last few days), I updated what clients had access to in real time. More OUTSTANDING WORK. There is no one who is going to out-work me – more talent than I have, heck yes, better trader than I, heck yes – but not outwork me.
In that work, I had once again become bullish. Markets are a PROCESS…PROCESS, so my own analysis is a PROCESS. I become less bearish first, BEFORE I become bullish. I had totally correctly become bearish right at the 2/27 top area in the IWM, discussed here. But in that same post discussing why I been bearish right at the top, I also said that there would be a bottom in the upcoming week starting 3/25. And to “watch for a CHANGE OF CHARACTER in the IWM”. And sure enough, the IWM bottomed FIRST, I covered puts, once again IWM began leading, I noted that to clients on 3/27, chart #1 below, all discussed in the post on 3/28:
“The IWM is (starting to lead). It is showing RS. Positive action. Setting up a VERY GOOD RALLY. Individual stocks are resetting.”
And on 3/28, chart #2, and I gave a specific price:
“IWM starting to lead. Excellent volume at lows. Springs in indexes. CHANGE OF CHARACTER. Indexes PUTTING IN BOTTOMS. It will be a SOLID BOTTOM. IWM will break back above 152.80, and bring the momentum money flowing back in.”
CAN I BE MORE CLEAR SUCCINCT SPECIFIC, than those words.
And what did I NOT..NOT say? I DID NOT say it – MAY COULD SHOULD POSSIBLY – like all the other total frauds and morons who infest this business like leeches, sucking off of everyone. I said it will break back above 152.80 and bring the momentum crowd back in. Beautiful work.
And then right into the retest lows, what did I say on chart #3?
“Nice pullback, getting ready to “jump the creek“. Do you know what that means? Then learn it.
So, absolutely, as the IWM crossed 152.80, and the momentum money began flowing back in, the trend strengthening, leading to my 4/4 update, chart #4.
The Cup With Handle (CH) – excellent AHEAD…AHEAD OF TIME recognition of the formation of the CH, on Chart #4. And then use that Pre-Bko setup to begin buying the dips, I bought TNA, others could have used options. This year I’m trying to stay within the stock market 95% of the time. I’m on a mission, a challenge for myself. Do you know what a CH is? Then learn it.
And on Chart #5 below, the explanation.
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Very helpful to see how you called that turn in IWM, thanks.
Hey Dave. The cup/handle is literally the only sort of mainstream “chart pattern” that has a high probability success rate – of course, only when actually employed correctly. Huge distinction.
Just grind it out everyday Dave. You know this now.