Although the markets as a whole are not in great shape and mostly reflect a range there are some very nice looking chart setups currently. Back in March/April I posited on some charts noticed a slew of cup/handle patterns.
As a refresher, this is a chart pattern first identified by William O'Neill, great trader and publisher of IBD. Basically the formation is a bottoming and rise (forming a cup) and then a pause at the breakout (forming the handle). A series of higher lows and higher highs occur. This is a timeless pattern for a bullish construct that plays out over and over. Waiting for this great pattern to occur and then jumping on can be the springboard of huge profits.
CAUTION: there are stocks IN the formation and stocks that are trying to get there. In my work today I see some very good cup/handle setups:
DVN, CHK, CEO, IBM, XOM, CRM, ICE.
Tag >> CRM
In my Extreme Options service, we just closed out a very nice winner in CRM (partially out). I wanted to show what was happening to create this monster winner for subscribers. The stock has been in a strong trend up but this is quite volatile, I was looking for quick profits if the market continued its trend up. This has clearly been one of the leaders in tech for 2010. The hourly chart below shows a great pullback opportunity just three days ago, and we jumped all over it. We picked off this name for a big 100% winner on HALF and continue to hold the remainder for even bigger gains (as of the 4/22 close). I will write up recent trades on BBY, where we have just booked our THIRD big winner there this year!