Dear Fellow Trader:
It’s another great Friday and another exciting issue of Charting Your Success.
Here’s a quick inspirational message from Wendy on how setting an expectation of personal abundance creates a mindset leading to financial freedom.
Being thankful is one of the strongest and most transforming states of being. It shifts your perspective from lack to abundance and allows you to focus on the good in your life, which in turn pulls more blessings into your reality.- Wendy Kirkland
On to the info…
Note: When the market is tradeable, but slightly more volatile, or trading in a narrow range, you can use a combination of 30-minute and 60-minute charts for entry. When the market trend is stronger, you can use 60-minute and 120-minute charts for your trade entry, so that the trade can be held a little longer.
Set up the chart template as demonstrated in the Perfect Storm book and create a list, so you can follow price movement as it moves through the PS alerts and confirmations on both the 30- and 60-minute charts.
Be sure to set price targets and stops prior to entry. Check earnings date so there are no surprises in the middle of your trades. New weekly option contracts are listed on Thursday mornings, or front month contracts are available on stocks that do not offer weekly options. Keep in mind much depends on what happens within the overall market.
“One stock might begin to have its pattern unfold the day after it is listed, and another stock may take a week to get started.”
In order to catch moves in a timely manner, you will probably want to review the charts and annotate them the night you receive the newsletter. Waiting until the market opens and trying to catch up is too hard. Create a chart list, annotate the charts, and plan your entries and exits. Then, when the market opens the next morning, you just pull up your list and scan through them visually. Don’t get left behind because you haven’t planned ahead.
PS+ Additions:
CHWY, SNAP, X
| Symbol | Company | Exchange | Sector | Industry |
| CHWY | CHWY – Chewy Inc. | NYSE | Consumer Discretionary | Specialty Retailers |
| SNAP | SNAP – Snap Inc. | NYSE | Communication Services | Internet |
| X | X – USX-US Steel Group, Inc. | NYSE | Materials | Steel |
PS- Patterns:
PDD, PLTR, TGT, UBER
| Symbol | Company | Exchange | Sector | Industry |
| PDD | PDD – PDD Holdings Inc. | NASD | Consumer Discretionary | Broadline Retailers |
| PLTR | PLTR – Palantir Technologies, Inc. | NYSE | Technology | Software |
| TGT | TGT – Target Corp. | NYSE | Consumer Staples | General Retailers |
| UBER | UBER – Uber Technologies, Inc. | NYSE | Technology | Software |
Sample Trade Example:
NCLH was on the December 12 newsletter. On December 12 the PPO crossed below its signal line, the -DI crossed above the +DI, and the 2EMA crossed below the 13EMA.
We then moved to the one-hour chart. The one-hour chart was similar. On December 12 the PPO crossed below its signal line, the -DI crossed above the +DI, and the 2EMA crossed below the 13EMA. In this trade we would have chosen the December 27 26 Put strike. The premium was $0.52. There has been no exit signal to date. The bid at this time is $0.98, which is a profit of 88%.
Candidate Selection and Managing the List
I have had a few subscribers ask how the list is compiled and what it means when a stock candidate is either added or removed from the list. During the week, 100s of charts are sorted through and watched each day. They are grouped based on what it is taking place; some are in the early stages of forming PS+, and others are forming PS- patterns. Remember that often one pattern leads to the next.
The actual processing of the symbols is an individual choice. Traders have different stock preferences, different size accounts, and varying risk tolerances.
So, as a PS+ is playing out, I have it on my radar as a possible PS-. This said, because a symbol gets dropped from the list doesn’t mean that you should exit a trade on that symbol. Or, if it should appear on the PS+ list, when you are in a PS- trade on that symbol, it doesn’t mean you should close your short trade. Close your trade when it gives exit signals.
The stock prices move in their own timeframe. One stock might begin to have its pattern unfold the day after it is listed, and another stock may take a week to get started. Therefore, each Friday, the symbols that are listed are new additions. It is up to you to add and delete symbols from your watchlist as the stocks begin to move through the stages of the pattern.
“It is up to you as the trader to work with the stock candidate information; make the information your own in the way you decide to process it.”
Perhaps, some of the newsletter symbols are not of interest to you. Maybe they are too expensive, you don’t like the sector, or you don’t think the potential move will make a worthwhile trade. Then don’t add them to your watchlist.
Other traders will add symbols they are interested in to a chart watchlist, and then run through those as they start to give alerts and follow them as they confirm and give entry signals. On Stockcharts.com, you can view them 10 at a time. Symbols that you are not going to trade get deleted from the list.
The actual processing of the symbols is an individual choice. Traders have different stock preferences, different size accounts, and varying risk tolerances. Some favor short trades; others long. Some love having the choice of both.
It is up to you as the trader to work with the stock candidate information; make the information your own in the way you decide to process it. The initial selection, hours of work, and chart reading has been done for you. The newsletters give you the refined candidates that, at the time they are listed, appear as if they could soon start giving alerts.