Note: Tim Knight is not ordinarily bullish is likely positioned for the downside as well.
DIG Near Breakout
Courtesy of Tim Knight at Slope of Hope
I’ve been mentioning lately how some folks are seeing inverted head and shoulders patterns where they don’t exist. Well, there’s one major ETF where it definitely does exist, and that’s the ultra-bullish energy DIG. It hasn’t broken out yet, but it’s geting tantalizingly close.
The one curious aspect to this is that volume is steadily shriveling up (and, because the price has been so static, it isn’t because the price has been getting out of reach for people).
What are your thoughts on DIG?
Hedging My Bets
I am concerned about what fun and games are left in store for us the rest of the month, particularly with the FOMC tomorrow, so I am going to populate one of my accounts with ten longs as a safety net.
All of them basically look like the graph below………
………and share these common properties:
- Plenty of "open air" on the upside;
- A nice relationship between volume and price;
- A clean breakout above a consolidation zone
The specific stocks, and their stops, are below. These are not "lottery plays", but more run-of-the-mill long choices.
- AB 24.69 400
- AIMC 9.20
- BBEP 10.69
- CPX 10.14
- DRYS 5.86
- LLL 79.86
- PCX 11.57
- SD 12.42
- FMCN 8.83
- HERO 5.63
