This is turning out to be one of the most interesting topping patterns of my career. Every major index is showing an over-extended trend and the reversal signals are getting more obvious, yet the Dow, S&P and Russell 2000 keep trying to hang on to the highs. This is the perfect time to buy into a bear strategy.
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Equity Oracle: 10/02/14
The Dow Jones Industrials have taken a beating over the past few days but there are a handful of small cap stocks that still look promising. Keep in mind that our time frame for this trade is very short-term.
Equity Oracle: 09/25/14
The iShares Silver Trust (SLV) is one we have traded with great success. As you can see from the daily chart above, the price has drifted well below the 200-day moving average and it looks like the green candles are starting to show on higher volume. The higher volume tells us the buyers are getting more motivated to rally […]
Equity Oracle: 09/17/14
Geron, Corp. (Ticker: GERN) has been a very reliable stock for us over the years and it follows the technical signals quite nicely. As you can see from the daily candle chart (above) the stock is showing a bullish engulfing pattern right at a role reversal support level.
Equity Oracle: 09/11/14
The Bullish Engulfing Pattern is what first caught my eye but what really makes me feel good about this stock is that we’ve consistently made money with this one in the past. Bullish Engulfing Patterns are accurate around 80% of the time but what that also means is that they fail 20% of the time, which is why we […]
Equity Oracle: 09/04/14
It is becoming more difficult to find new buy candidates as the market continues to move higher. We don’t want to overload our accounts with long positions because it just adds to the risk and a market correction/selloff would do more harm than good if we don’t do something to protect ourselves at this point.
Equity Oracle: 08/28/14
Last week an alert went out to buy PFIE on a breakout from the Cup & Handle Pattern. As you can see from the daily candle chart (above) the stock rallied exactly like we thought it would, however, yesterday a bearish engulfing pattern showed up at a resistance point. 80% of the time a stock will drop after a […]
Equity Oracle: 08/21/14
There are many different types of price patterns, but the Cup & Handle Pattern is one of the most reliable around. It’s a simple pattern that’s easy to recognize and many traders look for it as an opportunity to make a profit. The key to success is patience. In other words, you have to wait for the breakout to […]
Equity Oracle: 08/14/14
We have traded Barrack Gold in the past with good success. The stock follows the technical signals like a charm and I see no reason why we wouldn’t see a rally above the rim of the Cup & Handle. The Cup and Handle pattern is one of the most reliable price patterns around and many […]
Equity Oracle: 08/06/14
Two weeks ago I sent out an alert to buy Sprint with a $2 risk per share set on the trade. Since then the stock has dropped on news that Sprint Corp. was abandoning its pursuit of T-Mobile US. Above you will see where I’ve marked the chart where the news was first released that Sprint was putting plans […]