Casaubon, in one of my earlier messages to Dennis I said ...
One reason why I am short term bullish is that I see so many stocks setting up in bullish formations, such as inverse head and shoulders, cup with a handle, flat base, etc. Many of these stocks have already broken out. (I can give you a list of these stocks, if you like, after I finish my weekend chart review.)
In your message you agreed about the preponderance of bullish basing patterns and breakouts. You also asked me to show you my list of bullish set ups. So, here are my cup with a handle set ups and break outs:
The following stocks are setting up in Cup with a Handle chart patterns:
AVRT, BVF, CHKP, CMVT, CDA, FLEX, HOTT, INTC, JDSU, KCP, KG, LM, LEH, LOGIY, MERQ, MCRL, NTAP, NICE, NDN, NT, ORBK, PMCS, PKI, QGENF, RSAS, RSYS, RMDY, SCSC, SEBL, SIVB, SBUX, STT, TKLC
The following stocks recently broke out of Cup with a Handle chart patterns:
ADVS, AMGN, APH, BLDP, BMET, BFAM, CDT, DRAM, DTPI, DLTR, DURA, ELN, JBL, JMED, KSU, MWD, SFA
These are only the better quality stocks -- they actually make a profit (with the exception of BLDP).
I've had a great deal of experience with cup with a handle chart patterns. I've learned that they come in all shapes, sizes and variations. For instance, most have handles about 15% below the high on the left side of the cup. However, some have handles lower, some higher and some don't even form handles. I've never seen a cup with a handle chart pattern that is identical to the text book examples. I'm sure that I've probably mis-identified a few of the chart patterns. If so, please forgive me.
Also, in some of the chart patterns for the stocks set forth above a break out is imminent. In others, it may take several days for the handle to fully develop. The key to success is to establish a pivot point and wait for the break out on heavy volume.
One final word of caution -- I believe that the most dangerous time to buy a stock is when it is in its handle. I've seen many stocks trace out a cup with a handle chart pattern that fail to breakout; instead they tank. Don't buy a stock in anticipation of a break out. Wait for the break out on heavy volume.
Good luck!
EDIT: Its best to view the stock charts in semi-log scale. |
