In this article I’m going to follow up with the great flag patterns made by ALOG and HIG. I’m also going to show you a trade from one of our Flag-Trader students who did well to trade ANF recently, but could have done even better if he’d stuck to the trading plan that I taught you in the CD-ROMs!
Hi everyone
Remember my blog of 8th March this year where I mentioned that the markets would be rough after the summer? Well, that’s exactly what’s transpired isn’t it.
From several angles the markets looked tired, but September/October is a good time for a real wobble, as has been evidenced in previous stock market crashes. Yet, my friends and I spoke about this precise timing back in March, literally 6 months in advance! Well, I’m going to be bold and make another prediction right here and now! The markets will stabilize and the technical traders will return to dominate once the rush of news is all out.
We now have one major hurdle to negotiate … and that’s earnings season, which is almost upon us now! I’m expecting some more twists and turns on this roller coaster, after which the markets should have run out of excuses to behave so crazily.
Please be patient, and use this time to observe. The next few months will uncover some real gems, so hang in there – trust me on this! A big fall like this will be followed, sooner or later, but a big retracement. The big retracement will be accompanied with beautiful bull flag patterns that will be easy to trade.
Let’s now show you what happened to ALOG and HIG in the last two days.
First, ALOG. Here’s the original flag pattern:
Now see where it is:
Now let’s look at what HIG looked like:
… and take a look where it is now:
Now let’s take a look at ANF which was spotted by a Flag-Trader student a few days ago:
And now look at it!
In conclusion, although the markets are stampeding downwards there still is the odd gem out there. When the markets return to normal the flags will be much easier to unearth again, but you must understand these are exceptional times right now. Sanity will return to the markets and we’ll find plenty more opportunities soon enough, just like we always do.
All the best
Guy
