We are putting the finishing touches on another solid week of blocking out the noise and emotions of the moment inside the 12631 Trading Service that @RaginCajun and I direct. You simply must put in rigorous work on a daily basis to stay on top of a market that can change character quickly. With that in mind, the pullback on the senior indices this week was met with a noticeable uptick in bearish sentiment. And yet, plenty of individual stocks have consolidated on light volume, and more than a few are being permitted to break higher today, including my Amazon.com long. While no guarantee of a further bull run, the selling this week was of the mild variety, and not nearly enough to push me off my longs.

I will reserve the rest of my analysis for members of my Weekly Strategy Session product. In last week’s editions, I discussed the idea of judging whether individual breakouts are permitted even as the indices correct. In fact, unlike during the 11% correction we saw earlier this summer, that scenario is more conducive to a healthy market with staying power. Here is what I wrote:

We want to see not a loud, violent disagreement between bulls and bears reflected on the charts (which would be represented by loose and sloppy chart patterns with wild price swings), but instead simply boring, benign consolidation. That latter scenario of quiet digestion is far more likely (but still no 100% guarantee) to produce lower risk, higher probability entry points to long trading setups for traders who have been patiently waiting for them…even if the senior indices correct sideways or slightly down, a healthy market will still permit a fair amount of individual stocks to break out.

Please click here for more details about subscribing to my Weekly Strategy Session at a very reasonable price structure.

We are winding down another great week inside the 12631 Trading Service. After exuding patience and protecting capital by and large since the spring correction, we turned up the aggression a bit this week and benefited on the long side. The market has indeed improved over the past few weeks. We have worked very hard through the long periods of patience and maintaing very heavy cash positions. Hopefully, we can start to open up our games into the fall.

Of course, complacency is the enemy of the trader. So, I am not just going to presume that we are completely out of the woods. However, I am trading what I am seeing, and so are over 300 of my closest friends inside 12631 with @RaginCajun. As long as many individual stocks are permitted to break out and consolidate in a tight manner, it is tough for me to actively look for a market top.

If you are too busy to join our services in The PPT and 12631 then I urge you to look at our most recent product, my Weekly Strategy Session, where each weekend I prepare you for the upcoming week with a simple email delivered to your inbox.

Please click here for more details about subscribing to my Weekly Strategy Session at a very reasonable price structure.

Obviously, the shorts are on the run in this type of market.

Above, you will see today’s results for my ultimate short squeeze screen that I created in The PPT (all members can custom-make their own screens to help be prepared for various types of markets). Please click the image for a larger view. Now, what we do inside 12631 is filter the above results through sound technical analysis, applying risk management principles to find the best of the best setups and trading ideas.

Members of The PPT and 12631 should check inside my PPT home page for the actual screen of my “12631 FINISH HIM! SHORT KILLER SCREEN”

For more details about my forthcoming “chessNwine’s Weekly Strategy Session” service, click here and here.

Available soon…

See my notes on the chart below. Earnings are scheduled for 08/16, but I consider this a long-term play based on this monthly breakout. I believe that holding $26 as major support now, after acting as decade-long resistance, is central to the bull case. Beyond that, consider this an example of what to look for on the major market index charts in terms of conquering the April highs from earlier this year. We want to see a tight consolidation right at prior resistance before pushing through it, rather than just screaming up to the highs and seeing violent indecision with wild price swings. The former scenario illustrates that the chart is coming to terms impressively with a prior resistance level without being met by a group of powerful sellers.

Also, be sure to check out The Fly’s blog post tonight about my new service launching soon.

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