Here’s Some Evidence For Shorts
Just because a trade doesn’t
trigger doesn’t mean there isn’t opportunity down the road.
There will be times when our analysis is completely
on the wrong side and it seems that we’re battling the tide–but, on other
occasions our patience might turn into a stronger entry.
10:12:33
Intraday Setup Alert
Whole Foods Market (WFMI)
has put in a daily top pattern, with today’s inside bar action showing negative
divergence–down .43 at 80.48. The stock is currently forming a bear flag on
the 5-minute chart which traders might consider using to establish position
shorts on a break of pattern and session lows.
12:46:44
Intraday Update Alert
Whole Foods Market (WFMI)
never triggered shorts from our first alert–with subsequent action having the
stock scoring fresh 52-week highs. With session highs of 82.15, WFMI is
testing a technical resistance zone comprised of angular daily chart resistance
(triple top) and a 127% extension from its one month high-level base. Reversal
shorts might be considered on intraday development of either a
1,2,3 top on the 5-minute chart, or a break of pivot lows (81.78) on the
same time frame.
Â
Time will tell if I had the right idea in
attempting intraday shorts against daily chart pattern resistance. I’ll admit it
though, this purveyor of fine foods is leaving a bit of a bad taste for anyone
attempting intraday shorts thus far, as money management has been a key
ingredient in keeping this from being a recipe for disaster.Â
Chris Tyler