Trade Review $CEIX

Small Position, but good example!

O.k. I took a trade, let us review it.

That was the industry group focus list from yesterday with an RS Pattern before (!!!) the open.

Right out of the gate Coal was strong in the first 5 Minutes.

Now the key is to not get distracted. That is all one needs for this day (talking to myself because I am distracted by a ton of other action usually, but it is important to concentrate in a moment like this!).

This was the focus list before (!!!) the open for stocks.

All those stocks come from an industry with an relative strength pattern before open.

CEIX 0.00%↑ popped with the Industry Group and I took the trade (small position, very short holding period (already sold it) because of reasons I layed out yesterday).

My style is 100% CANSLIM without the typical chart patterns of CANSLIM.

Let us review the chart pattern (this is two days before the breakout, sorry, sometimes TC2000 does not let you jump to a day before, I do not know why, but the pattern looked basically the same a day before).

So what do we see on the IG Level:

1. Strong IG (blue line on the right)

2. Pulls back less than the SPY 0.00%↑

3. RS Line above the Channel on the weekly and the daily

Now the stock:

1. RS Line on the weekly above the channel (left bottom) and RS Line almost above the channel (it was above it one day before!).

2. The stock has decent fundamentals because it comes from that screen

So that is it, those will be my bread-and-butter trades.

1. Strong Industry Group (IG)

2. Relative strength (RS) pattern of IG and Stock (pulling back less than SPY 0.00%↑ and RS Line on the daily and weekly above the channel)

3. Decent fundamentals (they do not have to be stellar!)

There are more patterns on the stock level. I call them “power” patterns. They are not a must (and they have not been on CEIX 0.00%↑ !!!):

Long term reversal, price spike before and holding base, volume spikes, short term reversal relative to industry group.

A good recent example would be NINE 0.00%↑ (not in play now!!!):

1. Long term reversal

2. Price spike before

3. Volume spike before

4. Holding the base on the weekly (of the Price Spike)

5. RS Line above channel on the weekly and daily

6. Strong IG with RS Pattern (RS Line above Channel on the industry group and the
   monster kicker, the industry group does not go down while the market had a monster pullback!)

O.k. that is it, that is the trade review.

The focus list for today on the industry group level (for all subscribers) and stock level (for paying subscribers) will come in a seperate post.

All the best and best regards.

Andreas