Anyway, as the chart below shows, Thursday set up with a classic Wedge pattern(make sure you can identify it on the chart below..Click here for enlarged image link.)
Being that we basically live in the intra-day charts, we saw it developing and issued an alert on PIR which was exhibiting relative strength toward the end of Thursday's trade.
Friday confirmed Thursday's pattern but once again interest in the market was only in a select group of stocks(PIR not being one of them)..everyone is clearly scared that this is a Bull Trap(Up Move fake-out).
That being said, we've taken note of these "first responder" stocks and will be looking for them on pullbacks and if PIR under-performs again, we won't be shy to get out.
Remember that we're primarily Pullback Traders and won't hesitate to jump on a stock should it pullback enough where we see buying support.
Anyway, take note of the Short Term Resistance lines in the chart below as barring a much lower open on Monday, the market will probably spend time trying to take out both Resistance levels.
And lastly, I wanted to conclude with a comment on CVOL as we've gotten a better taste for how it trades.
Again, for some of our newer members, CVOL is a proxy for the VIX and appreciates in value when the market goes down..Yes, it's a Bearish play but doesn't involve using the Sell Key..
But just how efficiently it acts as such is a matter of debate..At times it's not so liquid but that's changing as noted by our inability to get our $1.70 bid filled on Friday afternoon..it traded as low as $1.72 and quickly ran to $1.86 in about 15 minutes when the market drifted lower..roughly 10% return in that short amount of time is nothing to sneeze at.
However, it's volatile as no doubt it's value changes according to whether or not the market is going higher and how much interest there is in it at any particular moment..and clearly the interest in CVOL has picked up.
The fact that it closed at $2.25 on Thursday and opened at $1.80 on Friday due to it's +150 point higher open says it all.
That being said, we're zeroing in on the liquidity zones and don't be surprised should we get more aggressive about adding CVOL to our holdings..once again(2x before for nice profits!)
So, in conclusion, let's see what the market provides us next week and what triggers in our filters.
Also, I'm soon to add a "Learn to Trade The Stealthy Trader Methodology" Boot Camp series that in a super consolidated group of live sessions, will take participants on the journey from the theory behind our methodology to how we find and execute on ideal risk/reward scenarios..So, should you decide to take part in this new Premium offering add-on, in addition to receiving our Alerts you'll now be able to find opportunities on your own.
More to follow on that front soon enough.
Enjoy the weekend everyone......