iBankCoin
Joined Nov 29, 2008
329 Blog Posts

Huge Intermediate-term Consolidation + Food For Thought

Yesterday’s action was amazing, however it was dull and slow. Many names that I play regularly were illiquid. Look at my trading yesterday and you will see how cautious I was. The first instance where I see a failed pattern for the day is a sign of caution. The second or third time it happens is when I make a decision to go read a book for the rest of the day vs. trade.

I was digging up some charts last night. The one that caught my eye was from 2003-2004:

spx2003-2005

Here is the SPX today:

spx9mo285sp

Let’s add some blank days in there. We are forming this broadening wedge and it fanning out.

spx3

Here’s the DJIA – same thing.

indu

We are in a huge intermediate-term consolidation. That is all.

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53 comments

  1. The Chart Addict addict
    The Chart Addict addict

    thanks……AIG looking liquid and active…have fun

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  2. frog65

    Thanks for sharing your charts CA. I like the way you look at things.

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  3. The Chart Addict

    Bought $AIG 39.16/17

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  4. DannyCali

    JAZZ break out

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  5. The Chart Addict

    wrong stock. out $AIG 38.84

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  6. DannyCali

    MTL

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  7. The Chart Addict

    Bought $HMIN 35.13/14

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  8. DannyCali

    mnkd

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  9. Notquite

    HGSI

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  10. The Chart Addict

    Bought $HGSI 28.67

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  11. The Chart Addict

    Bought $STEC 13.98

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  12. The Chart Addict

    Bought more $HGSI 28.74

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  13. The Chart Addict

    Out both $STEC and $HMIN 13.83, 35.44

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  14. The Chart Addict

    Sold half $HGSI 28.81

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  15. The Chart Addict

    Sold other half $HGSI 28.74.

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  16. The Chart Addict

    can’t see my charts. they’re all messed up. no trading until it’s fixed

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  17. DannyCali

    Anyone using Trategy Desk? Their server run slow lately

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  18. The Chart Addict

    I am back

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    • Trademark

      CA , what are you saying with your year to year comparison? That this is just a weigh station before further gains ala 2003?

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  19. Purdy

    short GG 43.26

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  20. Slick

    IO BTFO, too bad I missed it…

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  21. The Chart Addict

    bought $BCRX 11.76

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  22. The Chart Addict

    was bought 11.72 not 76. out all $bcrx 11.68 13:45:43

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  23. The Chart Addict

    follow-through problems persist

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  24. The Chart Addict

    Bought $AIG 38.16/17

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  25. The Chart Addict

    bought more $AIG 38.27

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  26. The Chart Addict

    lol out all $AIG 38.22

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  27. DannyCali

    BCRX

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  28. Purdy

    GRMN at 29.06

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  29. DannyCali

    TCK

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  30. DannyCali

    MBI – buy in dip

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  31. Purdy

    SBUX 21.26

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  32. trend

    THC

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  33. The Chart Addict

    Bought $PCLN 208.04

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  34. The Chart Addict

    Out $PCLN 208.09 b/e

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  35. The Chart Addict

    Today is one of those “read a book” days.

    Btw, don’t forget to watch my show at 10PM EST!

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  36. kaputer

    VVUS

    Asc triangle breakout intraday. Volume. Its competitor ARNA is up 6%, so VVUS stil has some room to go higher

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  37. retox

    preditcing above 1100 SPX tomorrow
    but I’m sick so don’t take my word for it – everything’s all cloudy

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  38. Teahouse On The Tracks
    Teahouse On The Tracks

    There goes INO

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  39. pissant

    I brought CVVZ to the board at the beginning of October @ 8.15….

    i’ve reentered the trade @ 8.51 today, plan on adding more before earnings.

    Earnings are on Friday morning, and it’s the first Conference Call the company is having along side the earnings release.

    Also, expect at some point between now and year end to have the company listed on Nasdaq, Investor Relations told me that they filed in August and expect listing before yr end…. wouldnt be suprised to see it come with earnings release this week.

    This is a chinese valves company that trades at 7x next years EPS… super cheap due to illiquidity, should gain steam when listed on Nasdaq. Two analyst already cover it, so it does have some exposure.

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  40. retox

    Playing oil inventory reports:

    Was talking to another trader today about how to deal with oil inventory reports and the sometimes mixed signals you will get on the numbers. He’s good trading oil but he gets killed on reports.

    Crude oil will, for example, sell fast on an inventory build only to whip back up and run because gasoline inventories had a drawdown and are ripping. Traders will get stuck in the short for crude not understanding what is going on (because they are not watching gas).

    Simple solution to this is to watch 3 contracts for complimentary moves.

    /CL – oil
    /RB – gas
    /HO – heating oil

    If ALL 3 move in the same direction, you have a great signal, if 2 move in the same direction, you might have a good signal. If gas is moving against you and you are in crude, you should consider getting out fast.

    The 4:30 inventory report today is a good example – all 3 sold the report. This should be near-term bearish for oil – just remember that there is no report tomorrow due to the holiday. The 2nd report hits the tape 11am Thusday.

    I’m short from above looking for low 78’s overnight.

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