March 5th, 2012

OK, so what I'm going to do is every day update with a few pictures and brief analysis of what I see...

Of the stocks I look at, 5 currently have patterns that are of interest to me.  One of them, Yahoo (YHOO) is actually just breaking out of Stage 3 into Stage 4, so I will be doing a practice Put option play on them in my next post.

BAC
BAC is currently in Stage 3, and should be expected to break resistance & drop soon.

BBY
BBY currently is in Stage 1, and has an upside triangle forming.  The support is around $22.50 and resistance is around $25.93.  The difference between the two is $3.43 so we should expect to see BBY rise $3.43 after breaking it's $25.93 resistance and go to $29.36

F
F is currently in a downside triangle.  Support is at $12.20, resistance is around $13.02.  If support fails, expect F to drop to around $11.40

GE
GE is currently in stage 3.  Waiting for it to break resistance and move lower.

It's early March, and mid to late March normally holds a low in the market so it's no surprise we're seeing more stocks set up for a fall.  We'll ride the drop with Put options and catch the rebound with Call options.

EDIT: Just noticed this little beauty too.  This is the weekly S&P 500 Index chart.  Notice the blue line indicating the trend of the S&P... then notice the blue line at the bottom showing the trend of the MACD Histogram.  Notice how one's going down & one's going up?  Looks like that annual March low is gearing up to hit!