FCX And GS

From two weeks ago on FCX:

"The Bulls have some work to do, building good bases and breaking out of them. The base-building process can be slow-w-w, but again, the Bullish Key Reversal looks good if it holds up."

Since the Bullish Key Reversal on October 5, The Bulls have done alright. They broke out above horizontal resistance near 36.00 (horizontal white line) last Wednesday for a "higher high," but it was on a Gap Up, which left TWO unfilled gaps in the intraday charts. That move resulted in both gaps getting filled on Thursday.

Friday was another Gap Up above the 36.00 area. UGH. Those "common gaps" tend to get filled sooner rather than later and it did in yesterday's selloff. I bought 2,500 shares of FCX at 35.05 after the gap was filled.





The market continued down for most of the session. Although FCX put in its session low early and held up all day, it didn't do much on the upside. I sold it for 35.28 in the final fifteen minutes of trading.





GS got whacked at the open, but what I liked about it was that it reversed higher immediately and took out the late Friday high (first white arrow), pulled back to the EMAs, then took out Friday's high (second white arrow). I bought 2,000 GS for 96.70 on the next pullback to the EMAs.





What I didn't like about it was that GS pulled all-ll the way back to the opening low and I very nearly was stopped out of it. LOL. I couldn't fault the GS Bulls, though. The benchmark SPX still was tanking, but GS held the early low (red arrow).

"Doubling down" on a loser, hoping that we'll get even (or better) on a trade, generally, isn't a good idea. "Hope" isn't a strategy. If, however, "the body of evidence" suggests that we've got sound reason for doubling down, it's justifiable.

Shortly after noon time, GS was giving a very bullish non-confirmation of the lows in the SPX. It had broken out of a Channel (pattern in white) and was forming a Symmetrical Triangle (pattern in orange) at the top of the Channel. That looked very nice. I bought another 2,000 GS at 96.00 with a target of the horizontal resistance at 96.81 (red line).




I sold all 4,000 GS for 96.83.



GS put in a high of 96.89 off that Double Breakout, then went into this Double Nested Channel. It started out being a Descending Triangle (pattern in yellow), which broke down, but morphed into TWO Channels: (1) the larger one, in white; (2) the smaller one in green, nested within it.

After the Double Nested Channel broke out, I bought back 2,000 GS at 96.36 on the pullback to the top of the Channel. The breakout put a target of 97.57 IN PLAY.

96.87 - high of the pattern
95.64 - low of the pattern

96.87 - 95.64 = 1.23 points of upside on a breakout above 96.34.

96.34 + 1.23 = Target: 97.57 IN PLAY



I had my hand on the buzzer to sell at the 97.57 target, but GS rallied only to 97.53, four cents shy of the target. Curses!

I sold at the Two Minute Warning, for 97.05.



Gain on the session: $3,800