Dear Fellow Trader,

The Market did plunge Monday and the rising trendline i highlighted (here many times over the last 2 weeks) on the NASDAQ and that had to be respected, was finally broken yesterday, most stocks were going down yesterday. The Best was to either short or stay put…This was to be expected, we ran hard since begining of March, for almost 3 months…
As discussed yesterday, we can expect some choppiness for the next few weeks, until the earning season of July Start…. *** By the way some of you were asking me in the survey, when will i reveal my identity…It will be done Thursday or Friday with the Launch of the Course…(for the ones that are interested).

Here is the clear view of the Break of the Trendline on the QQQQ. The break of the bold blue line is a selling trigger….for many large investors…For the experienced traders, there was a lot of good short again yesterday. Now we need to go day by day and see where will this correction go.

I will be taking advantage of this correction to show you and teach you a few things on how to wait before you enter in stock, to make sure you are never left holding the BAG…

Let’s look at DYMTF, this stock was on it’s rising trendline, it never had a Higher High than the previous day’s high on this chart (if you look at all the last few red candlesticks).
(IF YOU DO NOT UNDERSTAND THIS, BE READY TO GET THE COURSE WE ARE LAUNCHING THURSDAY…..)

So we basically never received any signal that this stock was ready to go again…and now it just broke the trendline….ON STRONG VOLUME..

SPNG will probably not continue…In any case it doesn’t seem that it wants to continue when we look at yesterday’s action. The positive is that it didn’t go down on this very negative day..That’s a positive to consider…But at the same time if the correction persist, SPNG should go down too… i am showing you a 60 Min charts….



WOW !!! MDOR came back to life yesterday and it was very very close to hitting my stop loss but as i discussed it a few days ago it was at 0,79 just under what was the last pivot that could act as support, so it was supported and yesterday the stock went up 25%…But trade this well, you need to understand where the rest of the market is. MDOR could be on it’s own pace, but it need to keep the volume and everything…

One Critical Lesson with MOS. It never tirggered an entry even if it look like stabilizing as discussed yesterday. We never had this Overcoming of the Previous Day’s High that i discussed here many times. Look at the blue arrow to see that it never went higher. So no entry and this saved us from a major break yesterday. As a matter of fact i shorted MOS at the open when i saw this pattern .

RIMM too never made a New High for many trading sessions. So that keep you away from these falling knifes, if you do not short them..

Same thing for LVS that i covered here yesterday. The fact that Yesterday it never traded higher than friday’s high prevented us from getting in, and protected us from this slide…

Have a Great Trading Day !