11/8 Thursday

Entered Bearish @ $41.16

Another Head and Shoulders! (Check out $MS- very similar setup forming)

So you can clear see the neckline there in the line-chart.  Let’s flip it to the candles and see where we opened today.

Well what do you know?  We gaped up this morning and tested that neckline resistance and yes it was perfect opportunity for me to get in bearish because I didn’t have to get in way below of yesterday’s close.   I actually thought about just not trading this thing at all because I thought maybe I was too late. But as I was scanning my stocks, I saw the gap up and the neckline testing.  I waited a bit to make sure it doesn’t push through the neckline.  After fizzling it for a bit, it started to tank again and that’s where I got in just below today’s open.

Targets = $37, $34

Bearish Divergences confirmed on all three oscillators (Stoch, RSI, MACD).  Bearish.

11/14 Wednesday

(9:41am CT) Breaking Down Important Support

We are now finally breaking that support that had been holding this whole bullish move last two months.

Very significant event today that the support is breaking down.

We still have lot of time to trade today so we don’t know yet if the bears going to retrace however looking at the Indices, it looks like we are going to stay at this level and hopefully we do.

So where we headed?

Ok well little bit of concern here.  200SMA (red) is coming up very soon along with his buddy 100SMA (blue).

However I want you to take a look at the angles on those long term moving averages.

They are not moving up but they are pretty flat.  This is good indication that overall trend is shifting thus their (MAs) strength of becoming of a support might be diminishing.  But we can not ignore the fact that long term moving averages could act as support still even though they are starting to be flat.

If you look up top, you will find that 10/20EMA have been crossed for sometime now and 10EMA (green) is about to cross 50EMA (darker purple) which suggests that bearish momentum is building.

Expecting huge bearish day today.

11/19 Monday

Stopped Out @ $40.56

Well it really turned it around this morning after Dow Jones and S&P 500 having just monstrous bullish day this morning and continuing for that matter.  I think $JPM is on its way to test that upper neckline there (my entry area). Gaped up this morning and now with a huge bullish candle.    Looks very bullish for short-term.

11/23 Friday

Re-entered Bearish Because Doji Tells The Story

1. $41 Neckline is still holding
2. If neckline sustains and rejects the price, the fall is bigger and faster
3. Last 5 days stock rose, volume declined = Not enough fuel to push through
4. DOJI!!!!!

This is the story of Doji. Doji was a gate keeper because there are so many enemies trying to get into his castle.  One day he was out with his family for a vacation, the enemies called Bulls marched in to his front gate. After hearing the news Doji got so mad he came back to his castle as fast as he could to protect the gate as he is the gate keeper.

He doesn’t always win but his winning ratio is high especially when Doji appears at the gate.

The red circle is Doji and as long as that Doji holds the gate, it will be mighty difficult to break.  If we either gap down on Monday morning or start to see some bearishness rolling in, it’s game over because Doji will make sure his gate is tightly shut.

Let’s all watch on Monday and see if Doji can help me with my bearish positions.  =)

11/30 Friday

(10:54am CT) Double Heads and Shoulders?

Ok so initially what I thought the right shoulder was now becoming 2nd head of this Head and Shoulders pattern as we are building that right shoulder. And this is where I have to be flexible and let the chart tell me what it is that it wants to be.   Looks like we are going to form this leaning (to the right) Head and Shoulders pattern.  Nonetheless this is TREND reversal pattern and when this is fully confirmed, we might see strong bearish trend occurring pretty soon here. I mean I’ve been tracking this thing down about a month now and I’ve learned so much about this stock and its behavior.

I think there is some stubbornness (mainly due to the market as a whole as they rallied very sharply the half of the November) here but the Bears have been keeping it cool and not fully surrendering.

As you can see that the old support becoming new resistance.  Even though market rallied sharply, $JPM got stuck right on that resistance last 8 trading days.  This is huge indication that the Bears are still in control and they are not backing down. Just look at the candles last 8 days how hard the Bulls tried to get in and it has been rejected time and time again.

We threw bunch of Doji, shooting stars, and hangmans on that resistance but still couldn’t break through the gate.

Bulls are tired and that’s for sure.. Once the Bears able to break the Bulls, this thing should drop pretty significantly and pretty rapidly I might add.

Or It’s Testing The Neckline

12/7 Friday

Got Stopped Out Yesterday