What To Watch Out For

By: All About Trends

In the stock market there are three things you need to know.

  • Uptrends and how to trade them
  • Downtrends and how to trade them
  • Change In Trends and how to identify them be it down to up or up to down.

Given we are sitting at some year highs all going into May with it's "Sell In May And Go Away" mantra (for those who subscribe to that self fulfilling prophecy) not to mention the potential wave count (5 waves up) and a fair amount of resistance now is a good time to talk a bit about Change In Trend patterns to be aware of.

After all if you are long at a market peak you need to know when to get out right?

Remember, the "What To Watch Out For" on the long side is the "What To Watch For" on the short side.

Yesterday we talked about a green line as shown in the daily S&P 500 chart. Let's expand on that a bit today as promised.  We call that Green trendline break with its bounce back up from underneath it a potential KODR which is short for Kiss Of Death Retracement. What this is, is when an issue breaks its uptrend to the downside as shown but then comes back up (think snapback rally) to kiss it from underneath then it rolls over to the downside some point soon after.

Currently in all the index charts below we see that as having taken place, at least the trendline break and the start of a rally back up under that trendline.

As you can see in the Dow chart , we've broken a trendline and are now in the process of bouncing back up to it after a test of a support level. In addition to what's mentioned in the chart one can also see a potential (and we stress potential) head and shoulders top brewing. In order for this to come to fruition (a break of a head and shoulders top that is) this index must break below the lower pink bear channel line. That break is ones what to watch out for if long and the what to watch for if looking to sell short.

At this point this is all just a potential.  BUT we want to make sure you are prepared in advance in the event this were to take place. Will it? Who knows, but at least you won't be a deer in the headlights should that occur -- it's called managing the "what if" folks simple as that. Like we said it's just a potential scenario at this point that we'll be monitoring from here.

So for us we'll keep our focus upon our current positions and the new names we've added to the watch list today all from a "It's A Market Of Stocks" and a "Trade What We See" perspective.

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1. We publish a newsletter each Sunday and each trading day that gives you an overview of the market, teaches you about profitable technical chart patterns and how to trade them and includes a watch list of stocks that have completed these patterns.

2. When a stock on our watch list triggers a trade, we send you a Trade Trigger email alert so you can take the trade at the most opportune time.

3. Each newsletter provides updates on our current positions, stocks on our watch list and new stocks added to our watch list.

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All About Trends

10 thoughts on “What To Watch Out For

  1. I am trying to get membership and i don't have paypal account, is there any other way of making payment to get subscription. Please let me know.


    1. Yes, you can pay with a standard credit card or with a paypal account. For privacy reasons, all transactions (whether you pay with a credit card or Paypal) are managed by Paypal -- we don't have access to our subscribers financial records. So you can pay either way and don't need a Paypal account. To pay by credit card, simply click on the "no paypal account, pay with a standard credit card" link on the order form.

      All About Trends

  2. Really enjoyed this post. I thought I was seeing the potential of a head and shoulders pattern on the DOW. I have a great appreciation for technical analysis. Thank you.

  3. Jeremy,you mention that that you send a locking in gains alert, is this a new thing ?

    1. Julian,

      Locking in gains alerts as well as stop loss alerts and washing alerts (no gain, no loss) are a feature of All About Trends
      premium payfor subscriber service. Its not an INO/Marketclub service.
      Hope this helps

      Thanks for your interest

      All About Trends

  4. Their website says that price is only good for the first 2 months; then the price goes up to $29.99 a month. That's a 33% increase.

    So is the $19.99 offer good 'until cancelled,' or does the price go up to $29.99 for INO subscribers as well?

    1. Colin and Doug,

      That is the website's normal regular pricing . This IS a SPECIAL offer as stated hence the normal pricing does NOT apply.

      The price does NOT go up for INO subscribers.

      Its as stated, as long as you are a subscriber its 19.99 a month and thats it. Cancel at any time. No bait and switch.

      Thanks for your interest


  5. This offer says INO subscribers would only pay $19.99 a month, period. But under their Terms of Service, this price is only good for the first two months. Then the subscription price jumps to $29.99 a month, a 33!

    Kind of a bait and switch offer, wouldn't you say?

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