FAS Trading Range

FAS is in a trading range between 52.00 and 53.70. It allows an entry at the bottom for the expected resumption of climb, or as a short-term profit since it seems to touch both levels daily. The beauty of it is an entry at a known point, i.e., 52.00, with a nearby stop-loss point, thus generating an excellent reward-risk ratio. For example, if entry is 52.00, the stop loss is at 51.90, and the target at 53.70, the reward:risk ratio becomes (53.70-52.00):(52.00-51.90), or 1.70:0.10, or 17:1. Outstanding, considering an acceptable minimum is 3:1.

Here is another presentation dramatically illustrating the trading range of FAS--and its mirror twin, FAZ. One can more than imagine trading one, then switching to the other, as each peak and bottom alternately.
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07/30/09; 08:45: Pre-market action on FAS shows a breakout above the previous resistance line at 53.70. The short correction apparently lasted only four days rather than the expected week. This is bullish, as is the gap up in pre-market this morning. It should try to close the gap by retesting even down to the previous resistance 53.70, now support. That's the entry point. If the gap holds, support would be 54.14, which becomes the entry point. Stop loss would be under whichever becomes the bottom.

FAS and a Market Correction

The market has entered a correction of the last two weeks of upward movement. It should be mild, last only a week or so, then upward movement will resume. Look at it as an opportunity for better position.

Solars: JASO Positioning and Trend

JASO is positioned in the bottom portion of its channel, both on the daily (left) and hourly (right) graphs. It has broken out of a pennant and now appears heading for a higher channel position. The upside potential is indeed delightful.
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07/28/09; 16:25: Would appear the market is going into a correction for the last two weeks of upward movement. Illustrates the reason for stop losses, and will shortly provide a better entry. The correction should run for approximately one week. Today was the breakdown of the channels, with a retest this afternoon.

FAS Up and Away

FAS broke out of a flag in the form of a rectangle, today. Note the excursion to the bottom of the flag two days ago showing a divergence between the price making a lower low and stochastics making a higher low (see green lines). Until this downward excursion, prices were making a pennant, also a flag formation.

The rectangle also being a flag means the flag formation is still intact, allowing application of the adage "the flag flies at half-mast." Using the hourly graph on the right, the target calculates as (50-35)+45=60. That is the high point of the flag minus the start of the initial trend upward plus the low of the flag. Using the daily graph on the left, the target calculates as (66-12)+36=90. Point & figure target remains as 76 since July 23.

Any one or all should make one happy.

TNA Up

TNA is moving through a resistance level and appears to be ready to resume upward movement. Its Point & Figure target is 45. It has a couple of weaknesses, however. The On Balance Volume does not seem to fully support the move up, and the volume for the upward moves (see the P&F target graph) are less than volume on moves downward. As it moves up, it will retest the lower channel line around 32, and may retreat from there, so treat this one tenderly (that is, keep one's stop loss points close).

The End of FAS'ing Around

FAS is in a pennant after a 15-point move up. It has now pushed sideways until up against the lower channel line, and must now breakout or breakdown. Should it breakout of the pennant,the target calculates as 61 {(50-35)+46}. The Point & Figure target is 76.

The delightful characteristic of this pennant is the nearly flat top. It provides close positioning for a stop loss even should the price pull back to retest the top of the pennant after a breakout, and triangles usually breakout towards the flat side.

Seeking Balance

Originally, this blog was started to communicate with my children, but they long ago ceased reading it and I don’t blame them. It has become too concentrated on topics of little interest to them, and even abrasive since they are still in the years of learning a profession or skill to earn a living, not yet in the years of earnings, saving, and investing.

It has also become too concentrated even for me since I do have other interests, over concentrating for the moment perhaps to allow the pain of my mother’s passing to subside. Perhaps, it now has and I can return to a more balanced life, thus blogging with more balanced attention to other topics. There are more than a few that I wish to attend, but also will continue to follow ideas for trading and investment.

Although I’ve expended more time on investment and trading, I receive most hits on the spiritual topics, specifically the Eastern mantra “Om Brzee Namaha” and Lakota wisdom “Hoka Hey.” The mantra commonly appears fourth in international Google scans, indicating I’ve done something well. It is my mission to help others progress in life, and hits on these topics are those seeking wisdom.

There are also other topics that seem to receive either insufficient coverage, or rabid coverage from both sides, neither of which is complete, balanced, or even workable. For these areas, I wish to add a voice of balance, even if my voice is but a whisper in the hurricane. At least it will have been said. These will appear under the POV (Point of View) category.

To those few who do check in from time to time for investment and trading viewpoints, they will not go absent. It is still important in the spectrum of things, and the one avenue of escape for those who wish to leave the indentured financial status of normal society. That, too, is a topic of acute passion on my part.