Point and figure trading of US stocks

[PFtrader2012]

Moving further downwards. We have already broken the technical level on the SP500 that we identified time ago. We will see a pullback at some point, but for now we are continuing to focus on the weak stocks to short.

CPE has a double bottom point and figure pattern at 4.50 on the 1% chart. The candle stick chart shows the quick pullback on lower volume. Looks like a nice short to me.

 

[PFtrader2012]

We had a huge up bar in FB which we are interested in mainly on the short side.

We are still in the range we identified, and these huge up moves have happened before in this range.

If we have worse times ahead, an entry at the top of this range could prove fruitful.

 

[PFtrader2012]

ACN is a tech stock that is in a nice downtrend, we are abit over extended for going short, unless the bottom falls ut at this point, as we are at a support level.

 

[PFtrader2012]

For a trend follower ADP only means following it down. Maybe to 50.

 

[PFtrader2012]

UTX in a break down through the short term support

 

[PFtrader2012]

The market is getting somewhat oversold, and we WILL get a pullback at some point. WHEN the pullback comes a short term trader could enter positions in strong stocks, if keeping in mind that the 3 month longer trend is down.

We will get a pullback and test the 1400 level in SP500. If we get that far, or if we even go through it - only time will tell.

 

[PFtrader2012]

DVN breaks some tough support while SP500 breaks its support

 

[PFtrader2012]

We've had a big drop and will likely get a rally from here somewhere. Markets move up and down. We could be testing or entering the yellow area during this week. On Friday we saw a reversal bar.

 

[PFtrader2012]

For now it seems like we are in the rally we were anticipating earlier. How long it lasts, or if this is the beginning of a larger up - nobody knows.

KORS is an interesting stock for an upmove. It gapped earlier this year and we have now tried to close that gap, but failed. Instead we had a Wyckoff spring at the 48 level. On the P&F chart this reversal is happening at the exact level of the 49 top earlier this year.

 

[PFtrader2012]

The Intraday point and figure chart of EXPE tells us we might be breaking the 60 level.

 

[PFtrader2012]

Technical Wyckoff analysis of APPLE.

AAPL is again becoming interesting. A stock that has been in the highest number of funds, with funds then wanting to get rid of it, securing profits, as we have seen in the downtrend. We now had some stopping action with the reversal on Friday, and now a big up move. Potential selling climax and automatic rally, as Wyckoff traders would call this. The next pullback would probably provide a great risk/reward position if the selling climax holds, and also a break out above the current rally.

If the test of the selling climax does not hold, and we again see downside in the market. Then it is another story.

 

[PFtrader2012]

Another bullish bar in the market, and we got the reversal to X column in the SPY. Let's see if it will meet the resistance as we identified earlier.

 

[PFtrader2012]

S looks like it will want to head higher. We are pulling back to the gap on minimal volume.

 

[PFtrader2012]

How far up can we go? That is the question on many traders' minds right now.

Looking at SPY - the rally is on rather low volume. The thrust is weakening.

We are now looking for clues, evaluating if we will have a small pullback and go higher OR if we will head down again another leg.

We are approaching the resistance zone, the "ice" that we have fallen though, in the P&F chart. On the candlestick chart we can see that we are approaching a short term trend line.

 

[PFtrader2012]

CNP

will we finally fall through the 45 degree p&F trendline?

 

[PFtrader2012]

It is always interesting to see the big picture of the market on a weekly chart of SPY and weekly 5 point figure chart of SPY.

We are actually in a clear uptrend, had a pullback, that did not reach the lower trendline in place since 2009. On the short time frame trend line we can the higher high turning roughly at the level of this trendline.

On the 5 point figure chart we are in an uptrend, have broken a downtrend line and have a rising 45 degree trendline at our support.

 

[PFtrader2012]

Looking at two strong stocks AFFY and OCN

 

[PFtrader2012]

And lets compare the relative strength -

Which one would a trader choose? Among these nice performers the decision is hard. Based on technicals, AFFY is stronger. Usually it pays off to be in the strongest stocks.

The long term shows Affy being stronger, with a current pullback

Same is noted in the short term also, in the right hand side we have the 1 month view, in the left hand side longer term view. Bottom chart on each side is the RS calculation

 

[PFtrader2012]

YELP is all over the place, reminds me of a buddy of mine who was never able to sit still when we we're young. He got in trouble in school all the time.

For traders who enjoy trading range action this could be a play.

 

[PFtrader2012]

Two cruise line stocks-
RCL and CCL

Both strong. Looks like a nice industry and a nice ride - not just for the passengers of the cruise lines, but for the speculators as well.