Interesting Chart Patterns To Monitor In Coming Days...

[MR]

... and finally...

through all this process, I picked a stock in the Natural Gas sector that I thought had good Wave 3 trend potential, Williams (WMB).

According to Yahoo, "The Williams Companies, Inc. (Williams) is a natural gas company that primarily finds, produces, gathers, processes and transports natural gas. Its operations stretch across the United States and serve the Northwest, California, Rocky Mountains, Gulf Coast and Eastern Seaboard markets. The Company's business segments include power, gas pipeline, exploration and production, midstream and other."

Below is a copy of the weekly WMB chart to show you a little bit what I was seeing in this stock.

[MR]

I don't know if all this makes sense to others, or if I explained the process completely, but this is basically how I determined to act recently with my own real money to find what I think has a good reward potential for the risk I had to take at that time. Hope this helps someone out there...

Have a good Thanksgiving you'all!

Marc

[MR]

Jim,

Back on October 6 you intimated you liked a cheap stock called Bema Gold (BGO). I said I agreed, and thought it was a nice stock and would like to buy it. Then gave parameters for potential buy scenarios (i.ei., I liked it at 2.50, but if it was strong it would not retrace below 2.85.) Did you buy any of it, and if so, I will show you in the next post why I would not sell it yet.

Marc

(see attached chart to be posted after this post.)

[MR]

Jim,

Here is the current BGO chart. The regular wave count is labeling it a 3-4-5 in progress, but if you look at the alternate long count is implies a wave 3 potential still. If I owed it, I am inclined to stay long this position still, for now. Gold has remained strong as we talked about earlier in this thread.

Marc

[MR]

Just to show you even experts are human and not infallable, I was stopped out of a big portion of my WMB shares today at $16.56, which is today's low. (I am still holding long 1,000 shares.)

Initially I was a sad about this because I wanted to stay with the longer-term up trend now in progress. But as they say, "a profit is a profit." When trading one has to also place a very high value on money management as well as nice looking chart pattern.

After being stopped out I took another look at this stock to figure out did I do the right thing allowing myself to get stopped out? (Sometimes using trailing stops is not always mechanical, but more instinctual. I had to double check my strategy....)

In hindsight, I think I did the right thing. I am now noticing on the very short-term charts-- ie, 15, 30 and hourly charts-- some forms of oscillator internal and angle divergence building. So, at least I feel just a little bit better.

Now, in my humble opinion, the key for this stock the next two days is to focus on this divergence, particulary focus on the 15 minute MOB and today's low. See if it holds. If it does not, I anticipate more profit-taking in WMB short-term this week. Then it will set up a possible second chance to find a way back in but at a cheaper price.

If $16.56 holds now, I still own a 1,000 shares. which will be a small psychological concession.

I hope this helps someone out there. This is something you won't find many people teaching you for free very often. A real-time trade with real-life strategy adjustments along the way. (and I tell you the good with the bad decisions as you can see we are all human!)

Best regards and wishes to you all,

Marc

PS-- a positive of selling some shares today, is now I have some cash to re-invest... Some stocks I am watching and trying to decide what to do are PSS, AAUK, BGO, SIRI. (disclaimer: I own 200 sharse of SIRI, but want to figure out a safe place to buy some more, if that is possible at this time?)

[MR]

I haven't placed the order yet, but I am going to buy a 1,000 shares of AAUK.

This is highly risky, so I wouldn't advice anyone else to do this.

A safer technique is to go to a short-term time frame, wait patiently to identify a Type 1 buy setup.

I will let you know if t works out ok...

Marc

[MR]

I placed an order to buy 1,000 shares at 24.88. I haven't been filled. If filled, my initial target is $26.00, with an ideal target set for the previous high. I have no stop yet defined. If this works out, I will tell you more later my logic. Please, don't you try this idea as it is highly risky, and not a type 1 buy setup. I could be absolutely wrong... but am documenting this real-time so we can can later learn from my experience or my weakness.

-marc

[DuaneG]

Hi Marc,

It's been a while since I last posted to this thread, but I wanted to provide a follow up to my post on October 12th. Looks like the inverse head-and-shoulders played out well with some additional guidance from the MOB. Thoughts and comments are welcomed as usual.

[MR]

Duane,

Excellent job!!! Let's see, it was at 13.85 when you posted the Type 1 buy setup idea, and now it is closing in on 20.00. You are now, what, 3 for 3 on your chart picks here? That is very good! Congratulations on posting very good examples here!


Sincerely,
Marc

(PS- Can you tell the guys at Hayward I said hello!)

[MR]

Just checked my account... Am now officially long AAUK 1,000 shares.

[PRH]

This board would be very quiet were it not for the regular postings of our guru, Marcus R. With several years of Adv Get use and many teachings (mostly from MR) under my belt, I now venture with some postings again... This is for fun, education and entertainment only, trade at your own risk, and the usual disclaimers. Here is what we did recently.

We went long ALK (Alaska Airlines Group) today following the following parameter search:
Weekly Wave 3 UP and XTL blue
Daily XTL continuation Up
ALK was the only one in that group to fill the bill.

Commodity futures position FYI.
Jan Soybean short 548 (XTL continuation on daily)
March corn short 205 (big support break)
Jan Lumber long 328 (Type 1 Buy)
We were short Jan Feeder Cattle (stopped out - loss)
We were short Feb Bellies (time stop hit - small loss)
Continue to be long the Emini-Dow and Emini-Russell 2000, I prefer the latter.

Appropriate risk control is exercised for all of these of course.

I know these positions are now "after the fact" and "in progress"
but I will attempt to post some prospectively in the future. I continue to see the following setups to be high probability setups: XTL continuation on the daily chart in the direction of the weekly chart and "buying with a strong trend" (a modification of "buying with the trend") on the daily in the direction of the weekly chart.

Good trading, fair winds and following seas a sailor would say.

Cheers,

PRH

[MR]

Hi Phillip!

It is always a joy to see your name posting here! Looking forward to seeing more from you soon. Will check some of your ideas out soon.

Best wishes, Marc

[jims_id]

Hi Marc

Howdy Marc:

Sorry I didn't get back to you on Bema right away...on yet another vacation (trying to kill Bambi).

Yep, still long Bema. It looks to me like it is running into resistance right here and could be do for a serious pullback (the gold funds are taking a hit today). I think I will hold onto it, however, with a pretty wide stop ($2.84 to be exact). I'm hoping the 5 turns out to be a 3.

Regards,
Jim

[jims_id]

Everybody

I had a thought that I want to pass along to the readers of this thread. I think it would be fun if we started a competition of sorts re: stock selections, sort of along the lines of the MSN strategy lab (see http://moneycentral.msn.com/content/...LabSummary.asp). Hell, some of our members are as good as those guys and gals.

For example, what if each interested party starts a new thread and posts stock selections, giving a brief reason for the selection, stops, wave outlook, etc and updates it on a weekly (or more frequent) basis. I've been thinking about doing it, based on a scan I developed (I think I mentioned this before but it didn't garner much response). I would like to see more than 2 people participate if we're going to get this thing going. I think a 1 year (or 6 month) timeframe for results would be appropriate.

Let me here your thoughts and who would be willing to participate.

Regards to all,
Jim

[MR]

To follow up on my AAUK buy yesterday’s...

Originally posted by MR
I placed an order to buy 1,000 shares at 24.88. I haven't been filled. If filled, my initial target is $26.00, with an ideal target set for the previous high. I have no stop yet defined. If this works out, I will tell you more later my logic. Please, don't you try this idea as it is highly risky, and not a Type 1 Buy setup. I could be absolutely wrong... but am documenting this real-time so we can later learn from my experience or my weakness. - marc

The question every Advanced GET beginner seems to ask: “… If Wave 3’s are the strongest, why not just buy into the Wave 3 instead of waiting for a Wave 4 pullback?”

To answer this question, look at my entry yesterday. I bought into a Wave 3 breakout, at the high. Tell me now how to best manage this risk? It isn’t easy for most people to define, is it? I did this trade knowing full well the risk, which is why I told you to not take this trade because it is highly risky.

The moral of this story is, a disciplined approach always is, in the long run, the safest way to trade. Wait for the Wave 4 pullback and see if it setups up into a quality Type 1 Buy setup opportunity. Statistically this is always going to be the very best type of trade.

I will admit, I got greedy and wanted to buy into what I thought might be a Wave 3 breakout. I did not practice what I use to teach. Somehow it will work out (I anticipated this and have an action plan already ready)… but, please, if you are newer to AGET, please learn from my mistakes. Stay disciplined always in your AGET trading approach.

Buying into Wave 3 strength instead of just being patient, waiting for the lower-risk Wave 4 pullbacks can be a very tricky, and an expensive proposition when you get trapped in a no-win situation. Occasionally it works out. If you do this type of trading on a weekly basis someday you will end up really regretting it.

Best wishes to you all, Marc

(Below is a current chart attached....)