Pattern in Action or Hindsight

The stock patterns are very hard to spot on time. They all look good and impressive in hindsight. To really find a good trade setup and a right entry, traders have to be intimate with stock moves day in and day out. Use daily chart to know what is going on with a stock, and weekly or monthly charts to have trend perspective. It really takes patience, courage, and discipline to ride a trend to the end.

NVDA Monthly

NVDA Weekly

A Bear in a Bull Market

Cerner looks really weak, especially in this bull environment. It has broken down a HS shoulder and stayed there for a few weeks. It could be a good short candidate. Sometimes, the weekly RSI divergences call out the intermediate tops impressively.

Will robots take over?

After I just heard over someone talking about robots in a few occasions recently, along with recent strength in industrial stocks, I thought I shall check out robot stocks. Today I happened to see one, iRobot. The stock broke to all time high with persistent momentum. Probably just keep an eye on it.

Final Blowout or a Start of another Leg

This upside move of the stock market is led by bank and industry stocks. Based on the volume, momentum, and directional expansion just out of a big base and tight range from a lot of stocks, the move might have more legs.

The high beta / tech stocks are lagging this time, especially leaders of the previous up leg. Also there are divergences of market internals. This could mean a start of a bear top, but some stocks could move significantly higher before they go down.

The best thing to do might just go with flow, riding the uncertainty with a flexible mind and discipline approach. That is what a trader is supposed to be.

Top Volume Pattern

When a stock moves very little with extreme large volumes, old timers might say something is cooking. On other side of a coin, if a stock moves up with very little volumes, it is not good as well. Of course, volume and price are all relative to their context.

Class Top and Down Trend Development

From time to time, you see classic patterns in hindsight. You'll be lucky to catch one or two in real trading, and even tougher, to right them all the way to the end. It looks it easy to spot a big trend developing in a weekly chart.