Playing dual 60 minute pups and mini pups

• July 14, 2006
• Jea Yu

When the
60 minute chart on a stock forms a double inverse pup and mini inverse pup,
this sets up a very strong breakdown signal complete with a target set at the
lower bollinger bands. Pup patterns are when the 5 period simple moving average
stalls sideways as the 15 period simple moving average continues to rise. 
Eventually, steam builds in the contracting trend channel to cause an explosive
breakout above the 5 period moving average usually with upside targets at the
upper bollinger bands.  Mini pups are when the lead %d stochastics stalls on the
rise as the laggard %dslow stochastics continues to rise to form a wedge like
breakout Inverse pups are strong but adding in a mini inverse pup is like a heat
seeking missle complete with a target.

 

 

On July 14,
2006, AAPL formed a 60 minute inverse pup AND a mini inverse pup formation.  The
mini inverse pup set targets right at the 60 min lower bollinger bands at 51.15
x 51.10 levels.  We took AAPL SHORT at 51.72 at 9:38am to ride it down on
beautiful 3 min mini inverse pups as well as 8/13 minute inverse pups to lock
into the sellers at 51.12, out + .60

 

 

The markets have been a nasty
downward spiral due to the middle east conflicts.  The monthly lower bollinger
bands on the QQQQ’s sit at 34.85.  This would be the ideal support and spot to
nibble LONGS.  Earnings season kicks off next week so filter tightly.  Good
trading!

 

Feel free to send any questions
or comments to
jay@undergroundtrader.com

 

Jea
Yu has been involved with the equities markets for over 10-years. He specializes
with intraday trading in the U.S. equities and futures markets. To receive a
free 7 day trial to Jea Yu’s Underground Trading Pit,

click here or call 888.484.8220, ext. 1.