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Option Millionaires was started in February 2008 to provide traders with information about option trading. Led by three career option traders, whose pseudonyms are JimmyBob, UraniumPintoBeans, and Vantillian, they started one of the most popular option trading communities on the web. Now, Option... More
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  • Large Base On Heavily Shorted Basic Energy Services (BAS) - 60% Pop Incoming? (Video) 0 comments
    Mar 17, 2013 8:12 PM | about stocks: BAS

    Bill O' Neil, founder of Investor's Business Daily, always had a special fondness for big basing patterns on stocks. He constantly looked for "cup and handle patterns." That is, when a stock, which was dormant for a long period of time, makes a rounded bottom (the cup) before breaking out. This breakout is often met with increased selling, which sends the stock back down for a brief period (handle). Then, a surge of buyers enthusiastically rush in, which makes the dormant stock suddenly burst upward. This is exactly what I'm seeing in Basic Energy Service's stock.

    (click to enlarge)

    In addition to the bullish base and breakout in the stock, the sentiment on the stock is decisively bearish. This suggests that, if the stock begins to rise, a short squeeze could accelerate the climb many fold. For the full video analysis of the stock, click here. Make sure to view in 720p for best viewing experience!

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