Again our unique approach to reversals are proving most lucrative, with a stunning turnaround from the Dow and S&P Index railroad track ‘esque patterns that I highlighted yesterday.
Here is yesterday’s (Thursday’s) note just in case you missed it:
I mentioned yesterday that reversals would be a better bet to focus on for now.
The Dow-30 and S&P indices did form vague railroad track ‘esque setups, but their corresponding ETFs (the DIA and SPY) did not.
That’s not necessarily a terrible thing but it’s a reminder that you do want to check both the indices and the corresponding ETFs for the setups.
So, for the more adventurous there’s a possibility of a reversal follow-through today. For the more cautious it’s ok to remain cautious!
Even if you’re the cautious type who sat this one out (and that’s perfectly understandable given various factors and that the ETFs gapped significantly at the open) I do hope you are paying attention to these phenomenal setups. At the very least you should be observing and gaining confidence in these fantastic patterns.
Nothing’s guaranteed in life or trading, but the railroad track setup on the indices are a pretty decent bet, as I have highlighted in advance time and time again.
Along with those two indices, of my current favourite stocks AAPL flew having formed a doji on Tuesday and CMG continued its reversal from Tuesday (up $48) and powered to a new high, up almost $70 from the Railroad Track of 17th December. I’ve been mentioning CMG consistently now so I hope I’ve had some company there!
Finally, remember to ring-fence those profits by adjusting your stops to near breakeven. Tomorrow is another day.