Now, I try to see if there are meaniful entries in these stocks. With a small size hedged positions using options. Long or not? I hope for Long and I wish I can be right. ;) Post your comments, Lets start a discussion.
No interest in trading options for this. This is "Probability to Bounce" based setup. Which means you got 75% prob, this will go down. If the plan doesn't work. Dont get in. If in and goes wrong, get out.
This consolidation against a multi year resistance is key. This could potentially roll over (High Prob) or Breakout and go higher (Low Prob). Depending on what you choose, please use your entry and exit techniques. Cut your losses if it goes against you.
BA A simple UCS Ultimate Squeeze with UCS RSG Scan. Only interested in a breakout up. As the Squeeze shows that the resistance to the upside is more than the downside. When that resistance is taken out, you get more energy in the stock to move.
The manageable way to setup option position for such a breakout IMO is. Get in with a Debit Spread, in this case Call Debit Spread (Buy 16, Sell 20 strikes) (Buy open 16 and Sell open 20) If the breakout runs greater than $20, you can take the profit. If the breakout turns out to be fake, Roll the sold 20 strikes to 13 strike. I.e., Buy to close the 20 strikes...
Combining the Steve Primo Strategy with UCS_Probability to bounce. Boost your probability of successful picks. Links to both Indicators below. Let me know if you want me to start a stream on How I scan, setup trades etc.
I came up with this based on one of Tim West's publications from today. It seems that this indicator produces some really high quality signals when applied to the Vix itself, to trade S&P500 futures. Check it out, maybe you can come up with other variations of this technique. Seems like something I'd like to try asap. Good luck, Ivan.