Amazon is setting up as a new high breakout entry. The stock is currently above it's earnings breakout level, which sets it up in a "new box" above the $415-445 range.
A close here could set it up for a run to $500.
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The trading diary of Paul J. Singh. I trade full-time and empower traders by making the complex simple. I can be contacted at SinghJD1@aol.com
Showing posts with label new highs. Show all posts
Showing posts with label new highs. Show all posts
Monday, July 13, 2015
Friday, January 30, 2015
The Common Sense Approach to Swing Trading Apple: A Measured Move
One of my favorite swing trade setups is the earnings breakout. I know, we have established that in post after post. What you guys really want to know is how does The Market Speculator plan to trade Apple!
I've got your back fellow swing traders. Trading Apple, and making a profit from it, is like a badge of honor. Call your significant other up and tell them you traded Regular Therapeutics, and they will fall asleep before you even get to the profit talk. But Apple, now everybody wants to hear about an Apple trade.
Any time I look to make a swing trade, I search for a stock with a catalyst. AAPL has that, blowing the roof off earnings two days ago and gapping up on heavy volume.
Price is currently at $118.90, about a dollar away from the all time high. That is the key level. The last time AAPL broke out from an old high, back in mid-October, the stock went on a 15 point run in just under a month and a half.
History tends to repeat itself and I would not be surprised to see a similar run once AAPL clears the recent high. The $120 level is the buypoint. This entry level provides low risk and high reward, which is the most important of our 23 laws of trading.
So there you have it. The common sense approach to trading Apple.
f you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.
If you like this article, follow me on twitter
I've got your back fellow swing traders. Trading Apple, and making a profit from it, is like a badge of honor. Call your significant other up and tell them you traded Regular Therapeutics, and they will fall asleep before you even get to the profit talk. But Apple, now everybody wants to hear about an Apple trade.
Any time I look to make a swing trade, I search for a stock with a catalyst. AAPL has that, blowing the roof off earnings two days ago and gapping up on heavy volume.
Price is currently at $118.90, about a dollar away from the all time high. That is the key level. The last time AAPL broke out from an old high, back in mid-October, the stock went on a 15 point run in just under a month and a half.
History tends to repeat itself and I would not be surprised to see a similar run once AAPL clears the recent high. The $120 level is the buypoint. This entry level provides low risk and high reward, which is the most important of our 23 laws of trading.
So there you have it. The common sense approach to trading Apple.
f you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.
If you like this article, follow me on twitter
Labels:
AAPL,
catalyst,
earnings breakout,
new highs
Thursday, August 20, 2009
CX Chart
CX has a great looking chart that shows strong accumulation (volume pattern) and is breaking out to highs. The stock is extended, so I will wait for a pullback for entry.

Labels:
accumulation,
breakout-pullback,
new highs
Friday, July 17, 2009
The Short Apple Setup
AAPL is showing a negative divergence and is extremely extended at new highs. I am short with a tight stop.

Labels:
divergence,
new highs,
short setup
Sunday, February 08, 2009
Energy Looks Good: PBR
Energy stocks are showing good accumulation patterns while coming off bottom price patterns. Of the energies that I monitor, PBR is showing the best relative strength compared to the sector. It is at 30 day highs. I'd like to enter on pullback to support.
Labels:
breakout-pullback,
Chart,
new highs,
relative strength
Tuesday, May 22, 2007
Today's Trades and Analysis: GMRK and DXPE
I sold 400 shares of GMRK at $53.85 (entry at $49.76) for a $1636 gain (+8.2%).


Trade Analysis:
Without going into too much detail, both of these trades offered nice breakout-pullback setups. I entered at support, which was at the bottom of the breakouts, just under price congestion.
While I am not very precise with entries, I am becoming much more focused on exits. Here, I timed my exits just under the recent highs, where there would likely be some panicked traders who bought the stocks at the high and watched it pullback.
As you can see from both of today's charts, that is exactly what happened. The stocks dipped right after hitting my profit targets.
After I have taken profits at the highs, I do not dump the stock off of my watchlists. If the stock bases and then breaks out above the old high, I may re-enter on the breakout, or allow the stock back on the breakout-pullback watchlist, in hopes for a pullback to what now is the old high.
I am still holding STLD, ZUES, SYNL and IBN

I sold 500 shares of DXPE at $52.35 (entry at $47.40) for a $2475 gain (+10.4%).

Self Analysis:
These trades are good examples of how I have grown as a trader. Last year, I would have most likely taken profits before my profit target, which was just under the recent high in both cases. Instead, I sent my targets right after I took my positions and fought the temptation to micro-manage the trades. The result was a combined +18.6% gain, rather than what would have likely been an 8-10% gain.
Trade Analysis:
Without going into too much detail, both of these trades offered nice breakout-pullback setups. I entered at support, which was at the bottom of the breakouts, just under price congestion.
While I am not very precise with entries, I am becoming much more focused on exits. Here, I timed my exits just under the recent highs, where there would likely be some panicked traders who bought the stocks at the high and watched it pullback.
As you can see from both of today's charts, that is exactly what happened. The stocks dipped right after hitting my profit targets.
After I have taken profits at the highs, I do not dump the stock off of my watchlists. If the stock bases and then breaks out above the old high, I may re-enter on the breakout, or allow the stock back on the breakout-pullback watchlist, in hopes for a pullback to what now is the old high.
I am still holding STLD, ZUES, SYNL and IBN
Labels:
break out,
breakout-pullback,
exit,
new highs,
setup,
Trade,
Trading Psychology
Friday, April 20, 2007
Breakout Chart: XOM
Exxon Mobil Corp. (XOM) broke out to new highs on above average volume. A low volume pullback to the prior highs, just under $79, would normally provide a good entry point.
While the breakout is bullish, there are some concerns for this stock. Notice the negative divergences in both RSI and stochastics. One would expect new highs in RSI and stochastics when price hits new highs, but here the two indicators are trending down. While this is not bullish, I would not short until confirmation of the divergence. If price pulls back below the old high, we might see a quick short opportunity.
Playing armchair quarterback, it's easy to see a missed opportunity for entry at $76. Here we had atextbook breakout from a "W" bottom formation.
While the breakout is bullish, there are some concerns for this stock. Notice the negative divergences in both RSI and stochastics. One would expect new highs in RSI and stochastics when price hits new highs, but here the two indicators are trending down. While this is not bullish, I would not short until confirmation of the divergence. If price pulls back below the old high, we might see a quick short opportunity.
Playing armchair quarterback, it's easy to see a missed opportunity for entry at $76. Here we had atextbook breakout from a "W" bottom formation.

Labels:
break out,
breakout-pullback,
divergence,
double bottom,
new highs,
RSI,
setup,
short,
Stochastic,
XOM
Sunday, March 11, 2007
New High Failure Trade and AAPL
One of my favorite short plays is the "new high failure" trade. There are three elements to this trade:
1) That stock makes a new high
2) RSI peaks at a lower level than the previous high
3) Take a short position if and only if the stock dip below the previous high
The recent failure of AAPL is a good example of this setup. The stock broke out to new highs in January. Many breakout traders saw this as a sign to jump on the Apple bandwagon. However, the fact that RSI peaked at a lower level than the November high was a warning sign. While not a signal to short, it was a warning that the stock should go on the "new high failure" watchlist. The optimal entry was few days later, when th stock gapped down below the old highs.

With so many stocks way below old highs, there are not many "new high failure" plays setting up right now. However, there are a number of stocks bouncing up to the old high resistance level. I will be watching this level for short entries. Maybe we can call this a "double" or "bounce" failure. For example, AAPL is inching up to the old high level on declining volume. If the stock fails at this level, which is likely, we could see another leg down.
1) That stock makes a new high
2) RSI peaks at a lower level than the previous high
3) Take a short position if and only if the stock dip below the previous high
The recent failure of AAPL is a good example of this setup. The stock broke out to new highs in January. Many breakout traders saw this as a sign to jump on the Apple bandwagon. However, the fact that RSI peaked at a lower level than the November high was a warning sign. While not a signal to short, it was a warning that the stock should go on the "new high failure" watchlist. The optimal entry was few days later, when th stock gapped down below the old highs.
With so many stocks way below old highs, there are not many "new high failure" plays setting up right now. However, there are a number of stocks bouncing up to the old high resistance level. I will be watching this level for short entries. Maybe we can call this a "double" or "bounce" failure. For example, AAPL is inching up to the old high level on declining volume. If the stock fails at this level, which is likely, we could see another leg down.
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