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Putting the Pieces Together

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The following is a walkthrough of some setups from yesterday:

1) Wednesday night's report said to keep Transocean (NYSE:RIG) on the long radar (it was a long pick for Wednesday morning). RIG turned its Daily Swing Chart down on trade below Wednesday’s low which in keeping with a bullish presumption, defined a low and a quick turn up yesterday morning. RIG exploded after offsetting the downside gap and after “two-plotting", leaving an outside up day.

2) Genesco (NYSE:GCO) was a short day-trade pick (as opposed to a SWING pick) for Thursday. GCO extended from the get-go to the downside. Note the little intraday W bottom which signaled it was time to lock up gains.

2) Regrettably, my computer crashed on Thursday so, although I was able to trade off my direct-access platform, I had no access to email and could not communicate a long setup on Blackberry (NASDAQ:BBRY). The stock mirrored the last buy setup when subscribers to the Daily Market Report were long at the end of January. Again, once Thursday’s downside gap was offset, which coincided with a breakout above a short-term declining trendline, BBRY extended to the 15 strike which as it happens ties to an approximate 50% retrace of the last little swing down.

Yesterday morning’s report flagged a bearish backtest in 3D Systems (NYSE:DDD), setting the stock up for more potential downside.

See an hourly DDD from Thursday morning’s alert (Wednesday’s action) here:

And the 10 minute for Thursday:

DDD is a good example of the notion that often in markets, the first mouse gets the squeeze while the second mouse gets the cheese.

Coinstar (NASDAQ:CSTR) and Carbo Ceramics (NYSE:CRR) also both offered nice continuation setups. CRR gave a good entry using an ORB.

CSTR gave a nice entry on continuation above its 200 dma which coincided with triggering a Rule of 4 Breakout (over triple tops).

Stratasys (NASDAQ:SSYS) is a textbook example of a TNT setup, the concept that the nature of price action is to expand and contract. Wednesday was a consolidation or Paws Day (pause day) following Tuesday’s downside impulse. Thursday SSYS continued lower.

Green Mountain Coffee (NASDAQ:GMCR) is a setup I saw but did not use that is worth showing. It points out the continuation following a turn up from a test of the 50 dma. Note the first hour spike high and the first pullback which led to a test of the morning highs. Note the late breakout failed when GMCR stabbed below the morning high, a sign that the runoff into the bell would likely see profit taking.

Editor's Note: The above note is a free edition of Jeff Cooper's Daily Market Report. For a two-week FREE trial of his daily commentary and nightly day and swing trading picks, click here.
POSITION:  No positions in stocks mentioned.