Jim's cycle trades

[Jim Smith]

AIG double bottom

eve and adam double bottom

[Jim Smith]

Pfe

big H/S bottom on weekly.....I think it can make $33 in late January.

[Jim Smith]

HET....broke downtrend

20 points off the highs.....largest of the casino operators.

[Rob]

Good eye, Jim. Interesting charts.

[Jim Smith]

BDK reacquiring weekly megaphone

look at the weekly chart.....when ARO reacquired it's megaphone pattern, it rallied 63% of the megaphones widest part.....I put a number on BDK at $90 based on ARO's experience.

[Jim Smith]

BDK....target likely closer to $86

shoulder from December 2004 at 86

[Jim Smith]

Busted pattern symmetrical triangle

BDK is working on becoming a busted pattern.....these busted patterns are great performers.

[Jim Smith]

MRK back to $33.50?

that's my bet......sometime in October.

[spikefader]

look at the weekly chart.....when ARO reacquired it's megaphone pattern, it rallied 63% of the megaphones widest part.....I put a number on BDK at $90 based on ARO's experience.

shoulder from December 2004 at 86

BDK is working on becoming a busted pattern.....these busted patterns are great performers.

My thoughts on BDK:

http://www.technicaltrades.net/2006/08/15/bdk-stalk-the-short/

[Jim Smith]

well aware of the BDK pattern

but, when those patterns fail like ARO did, wow, the profit was enormous....busted patterns often provide the best profit opportunities.

[Jim Smith]

Searching for busted patterns

there are so many chart readers these days I think the busted patterns are going to provide the best profits going forward.....ie, H/S patterns are obvious and therefore often doomed to failure....I think many folks give up on a chart once the pattern doesn't seem to play out as expected.....However, if they played the pattern failure, I think they'd ring the register with nice gains.


BDK got a new buy from Deutche bank today....looking forward to how it trades since it's between strikes and just a hair under the lower rail of the weekly symmetrical chart pattern.

[Jim Smith]

ADSK...bought in preopen

I think their numbers don't justify this selloff despite delivering less than a full earnings report....

[Jim Smith]

MHK....symmetrical triangel b/o?

Looks to have closed a hair above the top descending rail....Lots of housing related data this week along with LOW earnings Monday....MHK could be ready for a 15% rally near term.....

[skiracer]

there are so many chart readers these days I think the busted patterns are going to provide the best profits going forward.....ie, H/S patterns are obvious and therefore often doomed to failure....I think many folks give up on a chart once the pattern doesn't seem to play out as expected.....However, if they played the pattern failure, I think they'd ring the register with nice gains.


BDK got a new buy from Deutche bank today....looking forward to how it trades since it's between strikes and just a hair under the lower rail of the weekly symmetrical chart pattern.

Sometimes it's hard to see the forest for the trees but that's a great idea about looking for the busted out patterns.

[Jim Smith]

Here's a potential problem

The OEX simply ran out of gas when it reached the top rail on the weekly chart....The OEX was a relative strength leader....The dates of the rally match up with what occurred in July/August 2002.....Will September 2006 be a repeat of Sept 2002? There's plenty on the plate to worry about such as the middle east, oil and housing.....Can the market rally on worry alone? Yeah, if we were'nt over bought to begin with.....On the look out for a potentially horrific September selloff.