The Nasdaq 100 eminis (aka noodles)
have formed daily pup breakouts with upper Bollinger band targets at
1728. Before I left for vacation, I mentioned that the noodles needed to take a
breather because the stochastics oscillators were too toppy. The noodles did
just that as they tightened pullbacks to the daily 15s off 1677 and bounced back
through the daily 5 at 1700. Pup patterns are when the 5 period simple moving
average stalls flat while the rising 15 period simple moving average eventually
tightens the channel building up steam to breakout to the upper Bollinger bands.
When the overall market sets up a breakout, then its best to look for stock
charts that also mirror the breakout.
Broadcom (BRCM | Quote | Chart | News | PowerRating) has a daily mini pup with upper daily bbs (Bollinger
bands) at 49.50 level. We took longs off 48.60 and tried hard to pare some at
48.15 but it didn’t pullback enough in deadzone. The daily 5 is support on mini
pups which sits at 47.85.
When the noodles set up to breakout, its imperative that traders take stocks
that are mirroring the noodles to reap the rewards of the breakout. (AKAM | Quote | Chart | News | PowerRating)
(21.57) and (AAPL | Quote | Chart | News | PowerRating) (73.90) are two more that we are playing to the long
side from mirroring breakouts and squeezes.
Jea Yu
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.
