Fellow TraderPlanet members,  I am posting these commentaries  in order to encourage the exchange of trading tips, methods, and techniques with other members.  Please jump in with comments, suggestions, critiques, potential trades etc.

JOYG – (see yesterdays post for chart) Still watching as price closes on a well defined resistance zone.  For us to have our second entry point we would like to see price rebound off of $41.00 and make a short retrace.  Our second buy point is at the start of the upward movement after the rebound.   Our safest and last entry will be after the price breaks through $41.00 in a convincing way and then retraces back to $41.00 and retests the new support. 

EXM – Excel Maritime has been in my portfolio several times over the last couple of years.  It has been exciting to say the least.  Like most stocks, ETFs, or commodities I like to trade I look for certain patterns.  I’m a big fan of the Elliot Wave and the wave pattern I like for an entry looks like EXM’s chart today.



Looking a EXM’s chart should look familiar.  Like JOYG, yesterday, EXM completed a 5 wave bull wave, 3/3-6/2, followed by a retrace back 61.8%, a significant fibonacci level.  As in JOYG’s retrace to 38.2% , EXM’s retrace to 61.8% marks a completed correction and the beginning of a new bull 5 wave pattern.  The new wave 1 of 5 slammed into a resistance level defined by two shoulders of the previous wave pattern and took a retrace that should form wave 2 of 5.  If this in fact is the case then EXM’s price is ready to kickoff the 3rd wave.  Why do I like the 3rd Wave? Historically it is the 3rd wave that has the best odds for a significant movement.  So I need to plan for my entry into a trade during this wave.

Just as I described for JOYG yesterday I’m going to look for 3 points that I can enter a trade with EXM. My first entry point could be at hand. I’ll want to wait for the completion of the current retrace and then make my entry. This is the highest risk entry but one that could have the biggest gain by getting into the 3rd wave close to it’s beginning.  There is another strategy that might be used.  Take 1/3 of your alloted monies for this trade and enter here.  Use another 1/3 at the second entry etc.

There are two resistance levels ahead.  I’ll be watching to see if we get another buy point or the trade goes south.

NOTE: I am not an investment counselor nor am I making any recommendations to buy or sell any equities.  The opinion expressed in my commentaries are for discussion purposes only.