Market Overview

Shake and Bake Out High In Progress

By All About Trends

Over the weekend we said:

Beware of a breakout in the form of a shake and bake shake out high IF it were to occur. Think new highs and dies only in this case a new high off the November lows run.

For those who don't know what a shake and bake shake out high is? Well that's when an issue breaks out and gets all the emotional money all shook up with “Wow! It's breaking out I gotta buy!” only to have the issue turn around shortly thereafter and bake those same people.

On the short side for those who have short positions it causes them to emotionally get depressed and start fearing so out of BEING in a reactionary mode they cover.

NOTE NOTE NOTE: It's never a good thing to react folks as we've shown you time and time again because it's all about BEING (remember we are human BEINGS not human doings, in every moment you are being, are you being calm cool and collected? or out of control emotionally? The trick is to catch yourself in the process) in control of YOUR emotions vs them controlling you. Hard lesson to learn we know but you MUST learn this if you ever want to be successful in the markets or even life in general and you can take that to the bank.

Back to the short side of the shake and bake coin. So what do those who are short do? In this instance they cover and take the loss via getting shaked out only to have the issue turn around and fall apart without them ala they got baked when had they been in control of their emotions they would have found out it was all for naught then they get really upset because the stock falls without them. Folks we've all done it, that's how we learn though, or at least some of us do anyway. Enough said.

Names from our current holdings that are showing what MAY be “Shake and Bakes” are highlighted below and you won't be able to miss which ones are highlighted either.

As for the 60 minute index charts? And getting worse by the minute or better if you have short exposure that is.

 

12-13 The big question short term here (next few days) is whether that was it? Or we put in a D wave (pullback) with one more run higher in micro term for the E wave.

 


Yesterday we said:

“We'll continue to manage our positions and from the looks of everyone of them we STILL HAVE NO ISSUES to contend with here just as we stated over the weekend a bit of in-flight turbulence.”

What we'll have to see is IF the numerous names on our current holdings have truly put in shake and bakes here.

What we'll continue to do here is what we've been doing and that is slowly but surely taking things one step at a time and one short at a time based upon trading what we see not think here or fear on the short side. Should we make another quick news driven run higher for the taco bell border? Fine as we like shorting strength in issues with technical structure that deems a short sell.

The following is from today's mid day premium update from All About Trends. Subscribers receive daily commentary and a weekend wrap-up. Experience our accurate market analysis, trading methodology, and stock selection to raise your equity curve for only $20 for the first two months. If you want to wait and see and give our free newsletter a try to see what we're all about and grab a free report here. 

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

 

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