SSO: Two More Bullish Patterns, And GOOG

On the heels of Thursday's 3 Bullish Patterns in the SSO, it looked as though the bullishness was to continue yesterday morning. It was, but not in the way that I thought ;)

I started out re-entering my JOYG position at 23.66-23.67. We'll dispense with that right now. The general market was up all day; JOYG struggled all day. I threw it in late afternoon at roughly the same prices at which I entered and came out with a loss of about $30.

I also bought SSO again, at 23.35, on the strength of the Bullish Falling Wedge (pattern in white) breakout. Stop below the 23.17 low of the pattern. Like yesterday, the SSO formed a second bullish-looking pattern, the Ascending Triangle (in yellow). Unlike yesterday, the SSO broke down from the Ascending Triangle and also took out the 23.17 low of the Bullish Falling Wedge, and I got stopped out for a loss of $500, at 23.16. Boo-oo...LOL.

But, look what happened after that...

"Bigger picture," in the 10-Minute chart, the broken Bullish Falling Wedge and broken Ascending Triangle looked to be "morphing" (changing) into another Bull Flag! The breakout was above 23.28. I'm more than willing to get back into a trade, but I had two concerns: 1. everyone on the planet was expecting the SPX to retest the January-February highs of 875-877, so I was suspicious; 2. GOOG, which had reported earnings Thursday evening, had put in this Bearish Rising Wedge, which looked to be "morphing" (changing)into a H&S Top. We're seeing a lot of those lately, aren't we?

GOOG, indeed, completed the H&S Top pattern, and broke the neckline. That put a downside target of 389.50 IN PLAY. Although the SSO broke out its Bull Flag to the upside, I decided to short GOOG at 392.25 near the neckline breakdown, with a stop above the 394.71 high of the Right Shoulder. You know how much I like these "nested" patterns ;) I entered the order.

NO SHARES AVAILABLE TO SHORT. What? Wha-at??? You also know how much that irritates me. LOL. Fer cryin' out loud...


Even more irritating was to watch a THIRD Bearish pattern develop at the broken neckline, the Rectangle (in red). We know that mulitple patterns increase the likelihood that targets will get MADE. The broken Rectangle put roughly 389.35 IN PLAY, and both targets very quickly got MADE. Curses!

We also know that pattern breakdowns often get retested, particularly after targets get MADE. GOOG fell to a low of 388.58 and looked to be stablizing for at least a retest rally. I decided to enter LONG at 389.25 for a playback to the 391.02-391.05 lows of the broken Rectangle. Stop: Below the 388.58 low. Nice risk:reward on the trade.

There is a Market Gawd. I was in the trade for less than two minutes. GOOG rallied immediately after I bought it. When it got to 390.50, I entered my sell order at 390.85, just below the 391 target, to make sure that I got filled. Gain: $1,600, and richly deserved, if I might say so. NO SHARES AVAILABLE TO SHORT? Get outta here with that. LOL.

Meanwhile, back to the SSO...

The Bull Flag did break out to the upside, and in a fashion similar to Thursday's Bullish patterns, it "morphed" (changed) into another Bullish Inverse H&S pattern and then broke out of that, putting an upside target of 23.87 IN PLAY.

23.47 - The most conservative of the 23.47...23.48...23.49 neckline data points
23.07 - The low of The Head

23.47 - 23-07 = 0.40 points of upside on a breakout.
23.47 + 0.40 = Target: 23.87 IN PLAY

The highs of the late afternoon short-term Double Top were 23.88 and 23.89, and the 23.87 target got MADE.

The short-term Double Top puts a target of 23.26 IN PLAY. The pattern is very skimpy in terms of width. The trend is up, and the target is against the trend, so the target is less like to get MADE, but it's IN PLAY nonetheless.

23,88 - The more conservative of the 23.88-23.89 highs
23.57 - The pivot of the "M"-Top, or Double Top (synonymous)

23.88-23.57 = 0.31 points of downside from the break below 23.57
23.57 - 0.31 = Target: 23.26 IN PLAY

Supporting the target, though, is the fact that we did get to SPX 875 - 877 that "everyone" seemed to be expecting. That number is within a hair of the top of a possible Bearish Rising Wedge in the SPX Daily Chart.

First batch of trades.

The rest of the trades. Gain on the day: Roughly $1,050. Gain on the week: Roughly $15,500.

I post these real time trade executions from time to time to demonstrate why I took the trade, what the patterns/trendlines are, where the targets are, what stop I would use, etc. Please don't get the impression that I make $15,500 a week, or $800,000 a year! I just happened to have a very good week while I was posting these trades. Maybe that helped me to focus more, too, other than when I half fell asleep at the wheel on Thursday afternoon. LOL.