A Once in a Lifetime Penny Stock Opportunity

Are the financials finally out of the woods? If they are or if not is really not that important. If you are a technical trader, then you will see that the charts don’t lie.

The chart shows that this stock (UYG) is in a volatility squeeze. The stock has formed a descending triangle. The hope is that the stock will break to the up side through the resistance – passing the volatility test. Any trade I do will be above the upper resistance line, showing that the stock has passed the volatility test.

I have marked where I believe this stock is headed – the $4.50 to $5.00 price target. If you look at the dotted red line (the support level) you will see that the stock is sitting at a key support level. If the stock was to break down below the support level then this would be a Bear Trade. Keep in mind the stock is trading at a huge discount allowing you to get into the financials at rock bottom prices.

Click on the chart:


Whether or not I believe the market is at a key point is irrelevant to me because I am a technical trader. I take what market gives me. I trade the charts not the companies.

Traders Play Defense In A Weak Market

With bad news larking around every corner it looks like this up trending market is here to stay - or is it. If you listen to the talking heads on tv you don’t know what to believe, but if you listen to the chart it tells you what is going to happen. This market has moved up mainly on weak volatility. Its been short sellers covering their short positions, like I have been, and buying stocks that are squeezing the shorts out thus pushing the stocks higher. If you look at the chart you will see.

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update 6/25/09

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NEW UP DATE 070309
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new update 07/11/09
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