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What Happened Wednesday?

What In The World Happened Yesterday?

A real simple, classic All About Trends pattern that's what.

Yesterday we saw more of the same, up up and away with no end in sight, just more of the push push push trend channel resistance all along until?

Until we put in just the pattern that we've been spending a lot of time talking about for weeks! That being the Double Top Pattern.







In addition to that, we've been also pounding the table recently about NOT chasing stocks that are at trend channel resistance as well. Look no further than the trend channel shown below.



Gosh where is trend channel support? 1040/the 50 Day average that's where. But we've got a little bit of trendline support (not shown) at the 1060 ish level to contend with first.

Taking it one step further, let's take a look at a longer term chart of the Nasdaq 100 index. One look at it also ought to firm it up as to why we've been struggling here and why a day like yesterday was just begging to happen.



Why? It's resistance, overhead supply and a 61.8% fibonacci retracement level.

Yesterday's action is EXACTLY WHY WE DO NOT CHASE STOCKS.

Follow The Leaders

Yesterday is also a good reason why we have this list. It's a great example of why we DO NOT listen to what talking heads are saying on TV. Yesterday I just happened to be taking a break and caught a little bit of some guy from some fast money crowd saying, that "YOU GOTTA BE IN ENERGY AND THE COMMODITIES AND OF COURSE AAPL AND GOOG"

When I heard him say that I about lost it!

It's obvious that he doesn't subscribe to our service because if he did he would not have been shooting his mouth off about buy buy buy.

If he was a subcriber he'd have said folks we are at channel resistance vs ra ra ra.

About a half hour later we all know what happened. It's things like this that we warn against listening to. This guy NAILED the peak yesterday. Just look at the day's highs on all the energy stocks and AAPL and GOOG in our follow the leaders list below.

Moral of the story? Had you listened to this guy and right away bought Apple and Google you'd instantly be down about 4 points in Apple and about 10 points in Google not to mention the energy stocks that rolled over as well.

Listen to the market and not some talking head.

GOOG -- Google



BIDU -- Bidu.com




GS -- Goldman Sachs



This issue is approaching trendchannel support and the 50 day average, however something tells me we are better off staying away from this one.

Also, you want to trade in tandem with the market which means you want to buy this stock at trend line support when the market is also at trend line support. So you have the first element, but not the second.

VMW -- VMWare



CRM -- Salesforce.com



AAPL -- Apple



I don't care what anyone says, this stock is extended! Wow look at all that volume though right? Well, just remember for every buyer there has to be a seller of peanuts right? Even though they may be short term peanuts they are still peanuts. Talk to us on a Pullback Off Highs with the stoh's oversold first.

ESRX -- Express Script



MELI -- Mercado Libre



NE -- Noble Drilling



NBL -- Noble Energy



NOV -- National Oilwell



APA -- Apache



Look at those intraday swings on these names! Folks we've been talking about this for over a week. You'd think this guy on TV would be on the ball, cause he's on TV right? Wrong- Think Empty Suite, but he's a nice guy right?

This is why we use Technical Analysis and it's also why you came to the right place -- All About Trends.

As you can see for the most part all the follow the leaders are nowhere near low risk longside Pullback Off Highs Entry points. This ought to tell you something about the overall market.

What To Watch for from here:

With all of the above the game plan is buy trend channel support, sell trend channel resistance. Right now the bulk of what we see are issues that are at trend channel resistance. This is how the market talks to us vs Ra Ra Ra from some talking head who has a traditional wall st. mutual fund to pitch.

When these issues above come down to trend channel support then we'll talk about going long but not until. Why? Because at these levels the peanuts are stale and we don't buy peanuts when the circus is in town anyway. In addition to that we also don't chase buses, but you all already knew that right?

To learn more, sign up for our free newsletter at www.allabouttrends.net and receive our free report, "How To Outperform 90% of Wall Street With Just $500 A Week."