First, RC and I made a video. It is on his blog. They are all high probability breakout and/or continuation plays.
875 continues to be in focus (as is the 867-877 range). The market needs to break from this holding pattern quickly to meet resistance at 888. Frankly, if we continue to flag in this range, then it is bullish. If we breakout, it is obviously bullish. Even a breach of 860 leaves the uptrend still intact. There will need to be a major breakdown or a huge exhaustion gap in order me to go short at this point.
As you know, I already own CBB, CNXT, COIN, CPE, IO, THC, and WRES. I have a few other cheapies in my sights: EMKR, NXG, XTEX, GSIG. I made north of 50% last month playing only $1-3 stocks. In addition, there are a lot of oil/gas earnings plays that should breakout, including CHK and FST. I’ve said it many times before and I’ll say it again: be selective in your picks. Don’t pick random stocks and definitely don’t pick anything just because I’m buying something, despite the fact that I’m banking some serious coin.
I received hundreds of questions/e-mails over the past few weeks on a variety of topics. I think I’m going to cover moving averages. The main question was, “what MA’s do you use?”. That’s simple. I layer all of my long charts with the 15, 20, 50, 100, and 200-day MAs. For shorts, I add the 5 and 10 as well. The MA’s for the long-term are the 200-day (primary) and the 100-day (secondary). The intermediate-term MA is the 50-day. Short-term MA’s are the 15 and 20-day, and the most important for swing trading.
The most ideal situation is when the 15 and 20-day both provide underlying support. What’s even better is if the 50 and 100-day MA’s also provide underlying support. Right now, in the majority of stocks, the 200-day acts as an initial price target for exit. The 200-day MA is the strongest MA out of the ones mentioned. It defines the long-term trend. The COMP is the only MA that is testing the underbelly of the 200-day. Interestingly, the QQQQ is resting above it. Technically, if something is above the 200-day, it is in bullish territory, so keep an eye on tech.
The MA’s also gets rid of headaches and panic attacks. If you know where one of these significant MA’s are located, then you know there will be a bounce, at a minimum (in most cases). Conversely, if a stock is approaching a major MA, you know there will likely be a pullback or failure. Besides price, volume, and the basic chart patterns, I’ve relied primarily on the moving averages to make my trading decisions. I let the MA’s make the call. Stop panicking and impulse trading for no good reason. Let the charts make the decision for you.
If you enjoy the content at iBankCoin, please follow us on Twitter
Thanks for the help on the video, it will be a fun week.
Sprint said bye bye to it’s 200 day on Friday.
i dont understand one thing regarding your post. a break below 860(855 for confirmation) most certainly would show that the uptrend is in serious reconsideration. anyhow. a gap down with a huge sell off would have to be below 860. perhaps that happens between now and 9:30
Yea you’re right, I should have specified on the 6-month chart- the uptrend from March would still be intact, but threatened. A break below 860 would make me seriously reconsider the strength of the existing rally.
Chart Addict. bro, you and RC have been EN EFFING FUEGO with little cheapie winners! It’s the only really working right now. I have a feeling one of you guys is gonna discover the big 10 bagger. 1000% winner. Reminds me of NTES back in 2003. keep it bud.
JOSH WHY DONT” YOU GO BURN IN HELL.. GET OUT OF CA’s TAB
Above – calm the fuck down.
Stewie – nice to see you stop by.
ALL TECHNICAL TRADERS READ THIS IDIOTIC BLOOMBERG ARTICLE ON TA: http://www.bloomberg.com/apps/news?pid=20601087&sid=alwgQy9.K4LI&refer=home
CA: Good post on the importance of MAs as signals.
The Bloomberg article has so many “errors of omission” that it’s not even worth the time to counter the points.
I’ll only say that all “conventional” technical indicators that they mention have averages at their core. If a technical indicator doesn’t “work”, it either means that 1) the time period for the indicator is incorrect to describe the “average” price movement/momentum, and/or 2) the decision rules are incorrect. Usually, it’s a combination of both, but particularly number 2.
I’m a bit surprised that POS was published under the Bloomberg copyright, as opposed to an AARP newsletter.
Hi CA,
Are you still holding FEED? If not why the sale?
Tks.
No, because of its consolidation.
NXG $1.56
KGC if your into NXG, for more than a short-term play on gold.
I feel like a LOSER!! I bought COIN instead of XTXI on Friday!
you should have bought everything in sight.
I dropped CBB, not comfortable ahead of earnings.
LOLLLLLLLL…maybe!
CA – whats wrong with FEED consolidation? Looks completely normal to me, but I defer to the FEED master.
Nothing wrong with it. It’s gonna triangulate. Instead of me waiting, I sold it to get more money to buy all this other stuff that’s BTFO (I have almost no cash at hand).
I will revisit FEED soon. There is NOTHING wrong with it.
Danke Schoen !
back in FEED! 399
Glad to have you back 😀 .. I was feeling abandoned by the FEED Master 🙁
Hi CA,
what do you think about CPSL?
$2.70 is a good entry ?
yes $2.70 will do, probably for a 1 day hold.
thx juice – my target is about $4.80
Bought EMKR $1.39
CA,
do you think we’ll get a pullback tomorrow? or is this train chugging through the roof?
We need consolidation after a move like this.
CA, what do you think about CAR before earnings?
Hi CA,
Should we cut the FAZ hedge before it becomes zero. Haha!
Your take on SWIR and CDII?
Tks.
Chart Addict-
I just put those four of those oil stocks you mentioned up (PQ, XTXI, XTEX, CPE), crazy lock-step little bastards.
I noticed most of them are going into earnings.
How could at least two out of the four not be short-able!?
Glad you banked some coin on the upside, my friend!
I sold car a few days ago. I may have to revisit it.
SWIR, probable. I will wait for CDII to flag for entry.
I hope u banked Damon. thx