Last Gasp?
Netflix has been grinding at resistance for over a week with no apparent headway.
With stories like this, all the ‘good’ news may already be out (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
A Familiar Scene
AIG, did not reverse as anticipated, link here.
Short position, AIG-26-01, was closed out with a tiny loss.
There are fundamentals a-plenty, link here, to surmise that AIG’s on borrowed time (not advice, not a recommendation).
From the chart, it’s been five successive weekly highs, and higher lows.
With the knowledge a reversal can happen at any time, looking at the chart with its ‘spring’ condition, what’s the next (most likely) target?
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The Danger Point®, trade mark: No. 6,505,279
One Side, is Exhausted
Today was the day when the airline sector was supposed to resume its uptrend into a (possible) new high.
Early in the session, that move has failed (not advice, not a recommendation).
Instead of moving higher, price action printed a new daily low.
As Dr. Elder said years ago in ‘Come Into My Trading Room‘, when a set-up fails, at times, it’s best to exit (if positioned) and re-enter in the opposite direction.
Airlines Sector, Daily
Last Friday’s action was a reversal bar with a higher close. The inference was for continuation to the upside.
As the arrow notes, that move has failed.
The benefit, is a well-defined stop (if short); that is, today’s session high (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
OMC, Earnings
Omnicom, announced earnings on Wednesday, link here.
Market response was to launch from a spring set-up, straight into an up-thrust.
From lower blue line support, into upper blue line, resistance.
Note the increase in volume while range narrows.
Price action’s laboring higher, at resistance, as volume increases significantly (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
New Weekly Low
The weekly chart of Paccar Inc. shows a new weekly low off an up-thrust condition.
In addition, as can be seen from the lower blue support line, we also have a repeating pattern, link here (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Another, ‘Repeating’ Pattern
Lattice broke out to all-time highs on its latest earnings; here, here and here.
If you believe the press, it’s ‘buy’, ‘buy’, ‘buy’ (not advice, not a recommendation).
If we look at the actual truth, the price action, we (potentially) see something else.
The chart below, shows we’re at The Danger Point®, where it won’t take much to go either way.
Lattice Semiconductor LSCC, Daily Close
At this point, LSCC is in ‘up-thrust’ position.
Being at that location, does not guarantee a reversal.
It says, we’re at the point of instability. Price action needs to decide who’s in control, bulls or bears.
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The Danger Point®, trade mark: No. 6,505,279
Repeating Pattern
The last update on 3M, was here.
From that point, price action declined as expected, then pushed below support, getting itself into ‘spring’ condition.
From there it rallied, posting highs above previous highs and created an ‘up-thrust’.
So, now we have ‘spring-to up-thrust’, link here.
3M, MMM, Daily
The prior short trade, MMM-26-01, was closed out on January 27th, with a slight positive, break-even.
The stop for the current short, MMM-26-02, is (or will be), the session high (not advice, not a recommendation).
Other Markets
Separately, short trade SAIA-26-01, was closed out with 2.17%, profit.
The expectation was for a lower open and immediate continuation lower (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Breakout or Blowout?
Earnings release, pre-market trading in Lattice, is at all-time highs.
As the chart shows, if this (potential) breakout fails, then we have a repeating pattern set-up.
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The Danger Point®, trade mark: No. 6,505,279
After Hours, Tomorrow
ORLY, reports tomorrow, after-hours.
Since we got a ‘spring’ by penetrating support, it’s possible, price action will resolve itself by posting an up-thrust (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Earnings, late February, early March
Earning release for CVNA, CRWD, and CDNS, are scheduled here, here and here.
All three charts are in the same, or similar position.
Q: Anyone know?
A: Recently penetrated support or are testing that penetration.
Technically speaking, they’re all in Wyckoff ‘spring’ position (not advice, not a recommendation).
Chart analysis to follow.
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The Danger Point®, trade mark: No. 6,505,279
The Danger Point® 