Quote: "Q. The book had a whole section on buy-stop orders, which I presume has been dropped over the years due to false breakouts that you would get these days? As I read your Technically Speaking interview from 1997 in which you were talking about buying a strong close above the breakout level, and also note in the GTA reports I've come across that you always say something like "A breakout (on a closing basis) above that level would be the signal to do buying". So I'm assuming that the buy-stop section from the book is now void, and that we should be looking to buy breakouts near the close of the day if they are above the breakout level and towards the high of the day?

A. Because of the increasing amount of false breakouts, investors should only do buying when they see that the breakout isn’t false (and that it closes above the given level). However, a trader should do at least partial buying on an intraday basis when it breaks out above the given level (using a buy stop order), and then if at the end of the day it turns out to be false and it closes back below the level, then traders should immediately get out. But if not false and it hasn’t run too far, then later in the session, traders too can do additional buying."

(2013-05-05, 11:33 AM)isatrader Wrote:

(2013-05-05, 12:49 AM)goodtyneguy Wrote: He's ignoring his own advice to look for a minimum of double volume for trader break outs on AMAT

I think that this is a question of whether the first small continuation breakout also needs double volume on the breakout, as I've always believed that the volume rule only applies to the initial Stage 2A breakout and much bigger continuation move patterns like shown in the book, when the stock has gone sideways for a long period and not been able to break a level of resistance and then finally breaking out again.

I don't think in this case it's a big enough consolidation to warrant the volume rule again as the initial Stage 2A did have it just about and the overall cumulative volume shows it's moving in the right direction for the time being still. So I think you might be being a bit too strict, as there are normally many small consolidations in a Stage 2 advance and so each one won't have a volume surge to breakout out further.

(2013-05-05, 12:49 AM)goodtyneguy Wrote: EXPE doesn't look a very good pick to me either for the same reason mentioned above with Amazon. In addition the rally back up to the BD level was on higher than average volume and the price has closed above the 200 dma, but what do I know.

Quote:I've noticed you are using the exponential 50 and 200 day MAs, which will be different to the simple 200 day MA which the majority look at, so it's actually still just below the 200 dma following Fridays snap back rally on the market breakout to new highs.

Quote:I agree with you on this in that there's strong support to get through in the 60-50 zone, but I can see why he might find it interesting as it's made a six month head and shoulders pattern, and recently broke below that and the 200 day MA, which it rallied back up to close right on Friday as the 200 day MA is at 59.09 and the price closed at 59.

Relative performance versus the S&P 500 has broken down below the zero line and has been declining for many months, and the cumulative volume has rolled over and is declining also. The 10 week MA is declining, but the 30 week MA has not yet turned down yet, but did earlier in the week. But overall it's technical attributes are on the lower end of the scale now after being positive for the majority of the last year, as you can see on the attached technical attributes chart I've made up in my software to give a quick view of a stocks strength. As you can see, eight weeks ago it's started turning red after having a score of 8 out of 8 for most of the last year. Whereas now, it only has a score of 2 out of 8 and so I'd personally rate it as Stage 3B with a weekly close below 57 to move into Stage 4A imo.

Quote:Update: I managed to have a look at the April 26th GTA report that Weinstein does, and this is what he said about Expedia:

Quote:"Expedia (EXPE-OTC-58.56) is tracing out a major Stage 3 top pattern. Do selling on a close below 58 (as that would move EXPE into Stage 4A)." May 2013 Global Trend Alert - 4/26/13

So, it's looks like what I said above was inline with his Stage Analysis of it, although he's got the 4A breakdown point slightly above mine at 58. But it's good to see my analysis of the Stages was close to his at least.

(2013-05-08, 04:12 PM)isatrader Wrote: Also, the Stage 1 - Basing Phase. May begin accumulation has raised a few questions also. Like do you recommend someone using the investor method do any buying in Stage 1, and if so how to go about it? And the same question for people using the trader method, as I noticed in one of the interviews you mentioned that you recommended some trader buying even as early as Stage 4B- in some instances?