I blogged about $KMI yesterday and got traders in 12631 into some calls yesterday at a pretty nice price. However, there’s something about today’s action that should be noted.
Some of the biggest winners I’ve blogged here for you over the years were a couple earnings surprises. $X, $YRCW, $LULU, $APOL, etc. What made them unique was their volume structure, and overhead profile. Here’s another look at $KMI today:
In each earnings trade, what set the trade off and gave us an uninterrupted trend move through the pocket was a gap up into the overhead pocket, similar to what $KMI has done here today. In each instance, there was a quick move after the open in which profit takers drove prices lower, but found buyers on the retest of the trading range.
After that initial move, in each ticker I mentioned, there was consolidation or acceptance of new prices on the day, which served as a base for prices to move away from, like you see here in $KMI on the lower time frame. 
This is quite the arrangement for a trend style move here. Follow through on this gap tomorrow should spark a trend style move back up through the overhead pocket.
OA, you think the FOMC minutes turn into FOMO? How’s the profile above?
OA,
If we haven’t bought it yet, do you think we could buy it here?
As long as you are prepared to manage it tightly.
#NocturneWinning
Interesting chart I saw on oil this morning: http://361capital.com/wp-content/uploads/oil.png
TY, sir.
Re KMI: back in Oct when KMI issued its convertible debt in lieu of bond sale, the convert range was, w/out referring to my notes was 27 – 32.
That is my target. Timeframe? For synergy purposes mid April.
OA what month calls are you in? Is this purely for the earnings date? Fantastic looking profile and base.
Sorry, when I mentioned earnings trades I only meant that they provided an event where prices gapped into the profile. The buffet news was similar to an earnings reaction.
I bought March calls yesterday.
Ah yes, the pocket of life.