CHARTS GONE WILD!!!

The wait is over. I have my own site at www.ChartsGoneWild.com, powered by the Stocktwits Network. Stop by and take a peek.

CORRECTION: I WILL BLOG OVER AT CHARTLY UNTIL MY VENUE IS COMPLETED

You will find me here: http://blog.chart.ly/ for 3 weeks or so. After that, I will give an update upon the completion of my site.

THE WEEKLYTA BLOG WILL BE OPEN TEMPORARILY UNTIL THE NEW VENUE IS RELEASED

DOJI PLAYS / GOLD TIME CORRECTION / SWING UPDATE / DELAYED DAY TRADING

I expect this horizontal time correction in gold to continue with an upside breakout. I will make secondary entries in GLD, IAG, and GG, as well as other gold names during that time. I will exit the remaining 1/4 swing in WYNN today. So far all swing plays (MGM, LVS, WYNN, IAG , GG, GLD, etc.) have either been booked for a profit or are profitable on paper.


The market is in a channel, but more specifically, in a broadening reverse symmetrical triangle. This type of consolidation typically lasts for a while. At this point, this pattern is neither bullish nor bearish.


I have three finals coming up very soon, so I will not be executing rapid-fire scalps for the next 2 weeks (for the most part). Instead, most day trades will last longer than just a few minutes with more aggressive entries and delayed exits to accommodate my lack of time.

Below are two doji plays. Remember that doji are indecision days. How do you play doji gaps? You either go long or short either 1) upon a gap up above the previous days highs or a gap below the previous days low or 2) upon intra-day breakouts or breakdowns of said highs and lows. Once direction is determined, the prevailing side usually continues the price action in the direction of resolution.

GOLD UPDATE II

The GLD did what I had anticipated and buy stops were triggered in the following today:

1) GLD - $114.10
2) IAG - $16.41
3) GG - $40.92

Here was the first Gold Update written yesterday: http://ibankcoin.com/chart_addict/2010/04/26/gold-update-i/

GOLD UPDATE

I wrote a post on April 10th regarding my interest in gold. I was waiting for the sector to prove to me that it is good shape to make a full exit out of a multi-month base. The criteria I was looking for was one final consolidation. This criteria has been met in the form of a developing symmetrical triangle that is using the 20-day MA for support. In addition, referencing the GLD, I am using $114 as the neckline for an inverse head-and-shoulders.

The important aspect of this consolidation is the evolution of it. From December 2009 till early February 2010, gold formed a descending triangle. From that point up until this month, gold formed a channel. The entire pattern exhibits both an inverse head-and-shoulders as well as a rounding base. This month is the most important as short-term consolidation was able to maintain the 20-day MA as immediate support. The only concern is that all four MA's do not have positive slopes, still leaving remnants of a channel's characteristics.

The moment the GLD breaks through $114, I believe it will be time to accumulate gold for a swing, and perhaps, a positional trade. for a target as close to the December 2009 highs as possible. The only risk is one overlooked pattern, which is the ascending channel. As long as the following criteria are met, I will deploy gold positions:

1) MA slopes are positive on the 20-, 50-, 100-, and 200-day MAs.
2) The GLD breaks above $114.
3) The 20-day is not violated as nearest support.

If this is executed, then gold will have successfully breached the channel and the inverse H-and-S neckline. Keep an eye on this sector and it's components as we approach May.






Lastly, I have finals soon so don't expect me to do my usual rapid-fire trading for the next 2 weeks. If I will be trading, then the time frame will be longer than just a few minutes.

INTUITIVE TRADING: PART III SLIDES

Here: http://www.scribd.com/doc/30025881

INTUITIVE TRADING SLIDES

I started a new Intuitive Trading series on my last two Charts Gone Wild shows on Stocktwits TV. Part 3 will be this week. A got a lot of e-mails from people requesting the slides. Here they are folks, enjoy:

Intuitive Trading Part I: Right Brain vs. Left Brain: http://www.scribd.com/doc/29752005/psy1

Intuitive Trading Part II: Cognitive and Emotional Biases: http://www.scribd.com/doc/29752039

LONGER-TERM PLAY: GOLD AND SILVER

Many folks requested that I post longer-term ideas, or plays that don't last for only a few minutes heh. Well, first it was the casinos, which still have more room for upside, and now I want to talk about gold and silver.

Prior to 2010, all of us at iBankCoin made predictions for 2010. One of my predictions was that "Gold will continue it's correction for the first quarter of 2010 and break the 2009 highs after Q1". Exact words. So far, part one of that prediction is true and part two has yet to be seen. With recent technical developments in both gold and silver, I think we have a play here, finally.

Gold broke out of a symmetrical triangle at the beginning of this month. It is also testing the channel high as shown in the continuous contract chart. We may need to watch some action between the sym tri's upper resistance and the channel's high. Also, notice that the price action is fully above all four SMA's (20, 50, 100, 200). The GLD tells a similar story. I posted some of the best gold charts I could find.

Silver also broke out at the beginning of this month above upper multi-month resistance. I did not find as many silver setups, but precious metals, in general, should be a place to focus on.

I am looking for a test of channel highs and possibly one more pullback before deploying gold and I am looking for some kind of foothold between 18-18.70 in silver before deploying silver positions in my positional account.

WRITE A REVIEW

Right here on Investimonials.com: http://bit.ly/b2eV7Q

If you read my blogs, watch my shows, and follow my tweets (and I helped you out), let me know!

Thanks!

STOCKTWITS TV SHOW SLIDES

I am making my Stocktwits TV show slides available to everyone in PDF format for download.

For my show archives, you can go to this link: http://www.stocktwits.tv/charts-gone-wild-with-john-lee/

Here are the slides:

AIG Trade Review: http://www.scribd.com/doc/29142022/AIG-Trade
Volume Patterns: http://www.scribd.com/doc/29142294/Volume-Patterns
Common Breakouts: http://www.scribd.com/doc/29142224/Common-Breakouts
Doji Strategies: http://www.scribd.com/doc/29142270/Doji-Strategies

TRADE REVIEW: ABIO

For exact trade entries and exits, you can refer to the blog comments or on my twitter (@WeeklyTA). It's documented in real-time and I have about 60 traders who saw me trade it in real-time in 2 different live chat rooms.

I had my 2nd best trading day of 2010 thanks to ABIO. At 8:30AM Friday, ABIO announced that "a patent was issued to them for treating heart failure patients with Bucindolol based on genetic testing" (http://bit.ly/c08SLF). Like other plays, I do not care what the news is. I only care about the reaction to the news. This is the principle of momentum short-term traders. That's lesson #1 - don't get too absorb into the news, instead, trade the reaction to the news. We see this rule all the time, but do you really put it into practice or do you let your personal biases get in the way?

Lesson #2 is actually watching and "stalking" a stock prior to a breakout. It may take forever, and yes it is many times boring, but you gotta pay attention to the setups during the day. Use a 1-minute time frame for momentum stocks so that you're able to capture the first breakout out of a base. That's what I did...I caught ABIO's first breakout at $4.57/58 (after the opening gap). Do not miss the first breakout, or else it'll get more difficult to maintain your emotional stability. Don't let thoughts like "it's already up too much" get into your head. If the setup is great, then take it.

Immediately after a huge power spike, I immediately look back to the multi-month daily charts to find key support and resistance areas. This helps me identify where I need to buy and sell intra-day.

We can see a high of $4.50 in November 2009. We can see a high of $4.88 back in July 2009. The next level would be the breakaway gap back in June 2008 with a high of $5.29. After that, the gap started to fill and the target was the filling of the gap between $8-9. Technically, ABIO breached every level, every high, on the way up. I keep these levels in mind because when the stock does break..it's gonna BTFO. I've demonstrated this nearly every single week. Lesson #3 is to pay attention to past major price levels. Don't sit there intra-day wondering where the stock should be because the chart will tell you.

Intra-day, you have to have focus and discipline when executing the trades. Of course, in hindsight someone could say "why didn't you hold the stock till $9 and just get 100% in one trade?". Well, problem is that when the first breakout happens, no one knows where it'll end up by 4PM. Heck, I don't know, which is why I trade each intra-day 1-minute setup as if it were the last. It's a way to protect yourself from sudden reversals. Why? Stocks that explode to the moon will fall the hardest and many times, without warning. The important thing is to trade comfortably, take profits at appropriate levels, and play the stock till the wheels fall off. This is lesson #4.

The star that burns the brightest burns out faster than the star that emits a cooler, darker light. Don't forget this.

Lesson #5 - pay attention to volume. Volume is absolutely mandatory with momentum stocks. No volume = no trade. Notice how each intra-day breakout displayed some sort of sustained multi-bar volume spike? Combine that with a price spike and you got yourself a trade.

Key characteristics that make this spike "legit" vs. the other spikes in ABIO:

1) The gap was above all 4 MA's (20,50,100,200) immediately. Not true for the spike in November and July 2009.

2) Volume was exceptionally greater than any other day in the morning. This signified to me that there was going to be a massive move. This alone does not confirm direction however. It just tells me that it's going to be "one of those days".

3) The stock was able to breach previous highs with very little problem. Resistance is supposed to knock a stock down, but it didn't. ABIO would flag at, under, or above resistance (pausing) to launch itself again.

4) Once the gap was filling, the stock could not be stopped. A breakaway gap that fills in only one day is extremely, extremely, extremely RARE. This was an exceptional case.

Let it all sink in. If you have questions, then let me know.

Thanks to the folks who @replied me on ABIO. Hope you folks made some cash. (

CALL FOR TESTIMONIALS / FEEDBACK

Hey, what's up? Hope everyone had a great week. I know I did. I'm just wondering about my readers, viewers, and followers and wanted to catch up on what you guys are doing. I hope this blog, my shows, articles, tweets, and everything else have greatly contributed to your growth as a trader. To me, it seems like I learn something new every day and that's how it should be.

If you made money from my calls, articles, or anything else, LET ME KNOW! I'd love to hear about it. In addition, if there's something you'd like to see on the blog, my show, or twitter, send me your feedback. My eyes and ears are open to you. I'll be free this weekend (no traveling) and would be more than happy to open up some dialogue with each of you. Shoot me an e-mail at JCLee84 @ hotmail.com (no spaces in e-mail address), or leave a comment below and I'll get back to you as soon as possible.

Have a great weekend folks, and yes, I'll do an ABIO trade review this weekend.

2-YEAR INTERNATIONAL MARKETS

Nearly the rest of the world is in some sort of IT/LT consolidation range, most of them in rectangles, asc channels, or desc channels. However, we are blasting higher. There's obviously a divergence here. Look for any breakouts of breakdowns from consolidations in multiple international markets for clues.