The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
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Monday, December 6, 2010

When Head & Shoulders Attack...

Short sellers get squeezed...

RIMM - set up a H&S pattern. Just when the 200-dayMA was proving resistance a late-day rally last week looks to have squeezed shorts. There was a hidden divergence buy signal here with a higher low in price and lower momentum low.  Now that the 20-day is crossing the 200-day we either see a correction into 200MA support, or continuation until the 50-day comes into the 200-MA:

GLD - a H&S squeeze breakout

FCX - Shooting star today, but the squeeze was on a few days ago

GOOG - It had a chance to sell-off today, but closed higher and could force a squeeze above this resistance level:

V- a tight channel down, but 200-MA resistance overhead after this nice squeeze run

AAPL - looked like a H&S going in to last week.  The momentum oscillator broke out of a momentum divergence, but an abandoned baby candle pattern off of the 20-dayMA is still causing some price drift.

AMZN - getting a boost here from this triangle breakout, which looked to me like an evening doji star off of the $180 rejection last week.  A measured move out of this triangle isn't very large, so whichever way the momentum goes it can still show itself as divergent:

MON- looked like a good rejection on testing that breakdown zone, and looked to be following through....until it didn't, and shorts got squeezed again.  The momentum indicator broke out with price.

MOS - This complex Head & Shoulders is either looking for it's squeeze, or may be wearing its weakness on its sleeve.  Support from the 50-day, resistance from the 20-day and a lot of clear air below:

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