Reversal Patterns Are Heating Up

Recent stocks in our

Nightly Report have been paying big
The big trades have been in the reversal patterns. Typically, when I
see my bottom line being positively affected by reversal trades and not my
trending trades it’s a sign for a market shift or major sector rotations
occurring. Below are a few of the recent trades that have been filtering through
my nightly report. Yes, I realize showing them to you know does you no good
other than continuing to see these patterns and to see the potential of these

On a sector alert tonight take a peak at the weekly Oil
Service HOLDRs (OIH). This ETF has sold off for 7 weeks now for a 20% decline.
Check out the previous decline in this longer term uptrending ETF. Both previous
corrective declines lasted 8 weeks and between 17 and 20% declines as well. I
wouldn’t be surprised to see a reversal in this sector start to develop in the
next week.

Have a great night!

Derrik Hobbs



for the Active Trader is by far one of the best trading books to come along in a
long time. It deals with specifics in market entry, exits, and stop placement in
a simple, understandable approach. This is a jewel-defined trading plan that
will benefit both the long-term and short-term stock trader. Thank you for
sharing your trading experience and method. Your trading book is one of the best
I’ve read out of 50 and very enjoyable …”
–Daniel G.