Hello again fellow Slopers – Ryan here from SharePlanner.
For those of you who are not overly familiar with my style of trading,
I tend to focus solely on price and volume, while keeping the
indicators to a minimum.
Today
I want to provide y'all with a couple of trade setups that I thought
depending on your trading strategy and market bias, could fit nicely
into your portfolio. The first is a short setup in Goldman Sachs (GS).
For many of us, the opportunity to short GS goes well beyond a normal
trade – there a sense of satisfaction seeing such a corrupt company
depreciate in price, no doubt.
I believe the trade setup is solid, and provides an excellent Risk-Reward scenario.
Here you have a typical Head & Shoulders pattern, which is a total
divergence from what we have seen from this market of late, with
consecutive new highs taken place on a regular basis. You could argue
that the right shoulder being higher than the left shoulder is a
red-flag and I would agree to a certain point, but the fact that this
isoccurring while the market (i.e.the S&P) as we speak is
attempting to make a new high once again, and that the financial
industry as a whole is showing similar weakness, provides the trader an
solid 'edge' in terms of trading.
The next setup I wanted to show you comes from another high-priced stock – Blackrock (BLK).Unlike Goldman Craps, BLK has managed to put
in a new high of late (just barely though) and it is right now pulling
back in a nice and orderly fashion, holding the 50-day moving average
as a key support level in the process. If you are to go long in this
stock, a break below the fifty is a clear 'cut-and-run' signal in my
opinion, but for those of you who want to give this setup a little more
breathing room, I would place a stop below the previous "higher-low"
that was established.
