Sprint: The Most Beautiful Cup And Handle Pattern Ever

Feb. 17, 2013 9:24 PM ETAAPL, FSLR
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Contributor Since 2012

I used to run a limited partnership, boutique hedge fund in the 90s. Retired in 2000 and moved from New York City to Toronto, Canada, got married, raised a family and basically settled down. After a few years in Toronto, my wife got tired of the city’s 8 months of cold weather and insisted that we move to a city where there are 8 months of warm and balmy weather. So we settled on San Diego, CA and moved here in 2005 and now call this lovely city with the most perfect weather, home…

It’s been 4 years since I started this blog back in December of 2012…though I did not actively post this year, my plan for 2017 is to adopt a slightly more hands-on role…we shall see…

For those new here, a quick background…I started Options2Wealth as a 6 month experiment in equity options trading with a seed capital of $10,000…my trades were 100% transparent:  I would first announce my trade(s) here before placing them…once my intention was time-stamped on this blog, I would then place the actual trade and post a screenshot of its execution as proof…

How well did I do? Well, if you really want to know, you will need to go through the first 56 posts, all saved here for posterity by the wonderful internet…every single trade, buy or sell, and the reason(s) behind the trade along with supporting charts, etc…it was one heck of a ride… :) A few of the blog’s readers piggy-backed on my trades and did pretty well for themselves, later sharing their individual testimonials, in the comments section, with everyone here … ;)


Last year, on a lark, my wife and I started a new company in the high-end consumer space…our company, iBBQ, sells a line of very unique, hand-crafted barbecue tables called the Angara…our tables are built by us at a facility in Michigan…recently, the Robb Report, the Bible of luxury living, dubbed it the "Ultimate in Outdoor Entertaining.” … check us out at http://www.ibbq.com ...and should you be interested in bringing the world's most stunning and versatile outdoor dining table to your backyard, contact me here and I may be able to make you an offer too difficult to turn down... :)

Best of Luck to All!

karim pirani

December 27, 2016

When checking the technical health of a stock, I rely on its Point and Figure (P&F) chart first ...However, I also look at its candlestick patterns with emphasis on the stock's price relative to its 50 day and 200 day simple moving average lines or SMAs...

In candlesticks, one pattern in particular always gets my attention: the "Cup and Handle" pattern which was first noticed by William O'Neill, the Publisher of Investor's Business Daily, who also coined its name...

This past December I came across a blog post somewhere on the Net and its author was very bullish on the prospects of Sprint's stock price...So of course, the first thing I did was look at its P&F chart...The pattern appeared quite bullish so I pulled up its 3 year weekly candlestick chart...what I saw was a Cup and Handle pattern that was more perfectly formed than any I personally have ever seen in my 20 years of stock picking...Here is a screenshot to show what I mean:

Having piqued my interest, I started to sniff around and kick the tires...Everything looked pretty good and I started to build a position by buying its May 18, 2013 CALLS, Strike Price $6.00...In the 6+ weeks that I have held and added to my position, Sprint's stock price has been relatively stable +/- less than 10%...but the CALLS have been a lot more volatile...In any case, everything seems to have stabilized somewhat, at least from the periphary...However, in the past week, I have noticed some unusual buying activity in its securities that leads me to believe that this may be a prelude to the stock breaking out, to the upside...I feel that this move may be very imminent...like, this coming week...

Based on the above, I have decided to substantially increase my position in Sprint and first thing Tuesday (the Markets are closed on Monday on account of President's Day), I will buy more of these same May $6 CALLS...For the Options2Wealth portfolio in particular, I will buy 337 contacts to help round off the portfolio's holding to 500 contracts...

I may turn out to be wrong about the move starting this coming week, but feel pretty confident that this move will take place in the next few weeks...Also, when the stock price prints $6.50, it will be the break of a double top on Sprint's Point and Figure chart as well...all very bullish indeed...

kp

DISCLAIMER: All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is definitely not for the faint of heart as one's portfolio can move up, or down, anywhere between 10%-30% during a single trading day. Feel free to follow my progress here, but PLEASE do not follow my moves. However, if, in spite of all my exhortations, should you decide to do so, be advised that you, and ONLY YOU will be responsible for any losses that you may suffer...In other words, the onus is strictly on you.

Disclosure: I am long FSLR, LDK, S, TSL.

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