| Opportunities Lie in Wait |
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| August 21, 2007 |
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In times like these, where a news story can make or break the market day, it’s nice to have something you can count on. A familiar “something”, perhaps not as tangible as a security blanket, but something that provides a beacon of light during these tumultuous times. And if this “something” can help you through to the other—more profitable—side of the market, why not?
My “something” is chart patterns. Their consistency both in form and trading implications are the reason I have based my entire trading philosophy around them—and I’ve been rewarded handsomely (click here to find out exactly what Trending123 has yielded in the past).
It seems silly, right? A pattern can pull me through market instability, calming any trading jitters along the way?
On the surface, it might sound absurd. After all, any experienced trader realizes that he/she relinquished absolute, singular control as soon as they dipped their toes into the stock market. Aside from pulling out all your money and sitting on the sidelines for the remainder of your life, we are all aware at this point of what power we do—and don’t—have in regards to the market.
Just the same, wouldn’t it be nice to find a dependable device—a buoy of sorts—that levels us out and guides us through the choppiest waters? I say let chart patterns be your guide!
Beware the Evil Twin
There is one thing you have to be very careful about when looking at chart patterns. The shape itself won’t tell you the direction or speed of the trend, so you’ll see a lot of bullish and bearish chart patterns that look identical. We call these duplicates “the evil twin.” Some of them are so sneaky, they can fool even the most experienced traders.
That’s exactly the problem with the continuation expanding triangle (CET), also called simply an expanding triangle, and its twin, the reverse symmetrical triangle (RST), also called a megaphone top. The first is called expanding because the prices keep getting farther and farther apart (unlike a contracting triangle, where prices get closer together), and the second is called reverse symmetrical because it’s like a symmetrical triangle (the twin of the contracting triangle) in reverse.
So if they look so similar, how do you tell the difference? Well, the bullish continuation triangles have the tendency to:
- Overshoot the top trendline,
- Go down rapidly (very, very fast), then
- Shoot up out of nowhere and turn impulsive.
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So far we’ve seen the first two criteria in the NASDAQ. Observe how it overshoots the blue uptrend line at (5), then plummets down to the red line at C.
That means the only thing left is step 3—a sudden rally up in the NASDAQ. In fact, I think it’s going to outperform the S&P 500 and the Dow in the second half of 2007. Now, don’t get me wrong. I think this is one of the most difficult patterns to trade, because a lot of times, you just don’t know what you’re in. But for the savvy trader, this same pattern can bring about a ton of money making opportunities. Make sure you get in on some of them! Join us at Trending123 today.
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 NASDAQ
I’ve been beating the drum to “Year of the Chip” since the beginning of the year. That’s my prediction, and I’m sticking to it. That’s why I am urging my Trending123 subscribers—and now you—to focus your energy on the NASDAQ.
I think the S&P 500 and DOW are going to under-perform and thus, we need to focus on the upside potential we’re going to see for the rest of the year.
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There are many, MANY ways to profit from this market. If they’re not coming into focus from where you are, then come see things from my vantage point. At Trending123, you’ll see exactly why the market is performing the way it is and how you can profit from it—no matter what its next moves are!
Give us a whirl today…chances are good that you’ll thank me tomorrow, and the next day, and the next…
Sincerely,
John Lansing
Trending123
P.S. I love bigger profits — who doesn’t? But even though we have accumulated gains like 49.49% in Central European Distribution, 79.41% in Phazer Corp, and 109.91% in Zoll Medical, these aren’t my bread and butter. What I’m really after are sudden profits—stocks that we can get in and out of quickly for 10%-30% gains. If you’re game for these kinds of profits, then now’s the best time to join me at Trending123.
P.P.S. Are you interested in a continual stream of winning trades that all combine to double your money over and over again, building your wealth relentlessly over time? Say “Yes” right here!
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