One More Last Post Before Soccer

I am so excited to Trade Tomorrow. It should be a real house burner! A lot of very promising setups and momo is king right now.

Only Five Setups tonight but they are very good ones. I got Indoor soccer and won't have time. Will post intra day setups tmrw. Look for them.

A Word About Momentum

A lot of people who track my picks and track my trading on WallStreak sometimes think I am crazy by the bold calls on some momo names. But a lot of people do not understand the power and the mechnanics behind momomentum. To me, i do not even look at how many points or how much percent the stock is up. That alone clouds the jugdement and analysis. I look at the charts and what is it telling me about supply vs demand. I like to look at the aggression/power of the move and the volume and most importnatly, i always look at how the stock consolidates and contracts after periods of expansion(regardless of the timeframe). If the contraction looks corrective and constructive, then i get very very excited and i cannot buy enough it seems.
Look at BIDU today, it gapped up 20 points and a lot of people right away stopped looking at it, b/c they saw that 20 pts, then, they saw 22, 24, 25, 27, 29, etc. the whole time people were thinking it can't go any higher, smart momo traders were buying that stock up and forcing shorts to cover at any price and at one point BIDU was up almost 40 pts.
I let the stock or market tell me the story and i simply listen and don't ask questions. It's hard to figure why and how far a stock/market runs but the most important thing to know is that it is running. Go with it. That's my two cents.

Taken Taken Late in the Day

Closed out Trades from yesterday.

Bear Flags

Intra Day Trading Alert

Stocks to Watch Tmrw.

Over the Next few days I will post about some of my Favorite Patterns/setups to Trade

Pattern/Setup ONE: Flags. Read more below.

FLAGS: FLAGS: FLAGS!

Pattern/Setup ONE:


First things first:

I ALWAYS put trades based on where and what i think the Indices are are going to trade. If i think the indices are poised to move higher, then i want to position in the best and strongest stocks in the most powerful patterns. and vice versa.

So, Here is the type of flag patterns i like to look for and i consider these high probability patterns and I get excited whenever i spot them. These type of patterns are very common in momentum markets and i usually buy the pattern first and ask questions later.


1. Flags, Flags, Flags: I try to spot flags on ALL time frames. The daily charts are usually the most compelling to me. Always look for strong volume that propells the stock higher for at least 2-3 strong green bars bars, then a narrowing declining or sideways moving bars on declining volume. I like to position in the flag pattern rather than wait for a breakout. Breakouts usually happen fast and are very violent as flags are merely a 'pit stop' and there's a lot of eager traders waiting to jump in.


The Charts above are some examples of Flags I look for: Hope it will help you too.

Update in CMI chart

Intra Day Setup