--MAY 18 POST CONTINUED--
BotTrigger Trade Update: $KMX continues to rip higher from our $57.32 Buy Alert, now trading near the $65 area Notice how this bottom pattern played out on KMX . You'll recall we highlighted the counter trend rally got explosive once we firmly crossed the $60 mark. Now trading near $65 a share the stock is making it's way to retest it's all time high of $75.40. Also, weekly stochastics indicator is in a fresh bullish crossover as of the end of last week. That's largely why we're seeing this kind of move right here. Bullish crossovers, when married with a "pattern cultivation" that fleshes out a bottom = path of least resistance to the upside with a high probability of explosive moves like we're seeing today. Remember that the bullish engulfing bar that took place on April 6th was the first step in this direction. We highlighted that this tends to mean something. Although there was a lot of kerfuffle in the interim that presented itself with pullbacks/shakeouts/retracements (all which is normal behavior), that strong bull bar from April 6 did indeed set the stage. We saw from there higher-lows transpire & higher-highs on the near term time frames take place. This is especially why it's important not to over react and get spooked by one off events in the market. The market will always pullback & test your mettle w/ shenanigans . We will have a strong market correction coming up but it doesn't happen overnight. Pattern cultivation will tell the tale.
--APRIL 26 POST CONTINUED--
BotTrigger Trade Update: $KMX is behaving strong like bull right here. Now trading above $60 is exactly what we want to see. We may see another plunge below $60 to shake the tree in an attempt to root our support in this area so keep in mind that one day does not make a trend just yet. However, we noted that a close above the $60 mark would potentially ignite a new series of buying interest. One of the dynamics that tend to take place is that we get chasers jump into the stock that want to play the move for a retest of the highs. The market is not yet closed so KMX is not yet out of the woods. More importantly we really want to see KMX close the week above $60. A day or 2 closing above $60 is meaningless. We want to see the week close above $60. You'll notice that yesterday KMX hit a high of $60.61 and then reversed to close @ $58.74. Many may have gotten spooked and sold. But we're not paying attention to small ticks...we're looking at the bigger picture in "pattern-cultivation" ...there is a narrative that is taking place here within the larger trend. Today KMX looks to be on track to closing above $60 so let's see. Notice the stages of what took place here on KMX that helped it to "BUILD CAUSE" for this counter trend move to take place. I've numerically highlighted some of the most obvious developments that have taken place in this bottom
--APRIL 20, POST CONTINUED--
BotTrigger Trade Update: $KMX saw follow thru today on yet another strong bull bar closing well above yesterdays close. More importantly was that KMX closed above the bullish engulfing bar that it sported back on April 6. That April 6 bar was long with a low of $54.29, high of $58.20, & close of $58 that April 6 day. Since then, over the following 7 days KMX preceded to retrace the move to a retest of the lows in what was a very orderly pullback. This is different than a steep plunge pullback. Just better in terms of the quality of the pullback. KMX bounced of those lows and has now eclipsed the high of April 6's bull bar. This is all very bullish action. In the analysis of "pattern-cultivation" this is the kind of action that tends to ignite a counter trend rally where a whole new wave of interest/buyers comes into the stock. The next important level for KMX to trade above is the $60 area. Consider a close above this level to follow a much stronger rally then you've seen so far. Take notice of what happens when KMX (many stocks in general) start trading above the 21 day exponential moving average. KMX is now above this as well here as we can see on the chart.
--APRIL 19, POST CONTINUED--
BotTrigger Trade Update: $KMX take notice of this heavy bull bar following thru from the "bullish engulfing bar" we illustrated back on April 6. Follow thru can come days or weeks later. In the case of KMX it's showing it's intention almost 2 weeks after that first bull bar. We had a retest of the lows... which is common after deep corrections....as we've mentioned before, retests of the lows are largely purposed for the intention of communicating if the move is real or not. Other institutions, hedge funds, & buy programs all want to know if their buy is being supported by other smart money buy programs. So chunks of stock will get sold off so as to test the support lows. When support lows hold, and buying aggression is observed then that's when some of the most powerful counter trends start. Make no mistake, today's print on KMX is a bullish step in that direction. The next zone we want to see KMX power above is getting above it's 21 day exponential moving average which is above the $58 mark. So far today...KMX tagged this area and slightly retreated. More work to be done but it's getting there. EMES is also retesting the lows. CLF retesting the lows. These are all in the vicinity of HIGHER-LOWS and until proven otherwise, the benefit of the doubt continues to go to the buyers. TSLA, ISRG, CMG, now up +$50 from our entry...these are also stocks that went through significant retests of the lowss
--APRIL 6 ORIGINAL POST--
BotTrigger Trade Alert: $KMX bought @ $57.73. Since January of 2016 we have a series of higher-lows and higher-highs, which means that this has been in a confirmed uptrend. Similar to EMES, right now we're at the relative discount low on this recent pullback cycle which has gone down for 1.6 months -21% from peak to trough. Going back from Jan of 2016 we can see that the pullback cycle has usually stopped around the -20% area and ensuing rally off those bottoms has been anywhere from 35% to 45% off the bottom. Right now on this very day, KMX has printed a large bullish engulfing bar where it has erased the losses from the prior 2 days. What's more, as we're almost done with the week, KMX is sporting a very large bullish hammer candle on the weekly formation {#URL="http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=1101"#}. As we've said before, when you see this candle bar on the daily it's a strong signal to heed, but even more powerful is when you see it on the weekly chart, or even stronger on the monthly chart. Here we have a weekly bullish hammer that is marking the bottom. When bears see this, they retreat. The value proposition simply isn't in their favor....it becomes the bulls ball to carry from here as their buying aggression has trampled the selling aggression at this point. This is when you see powerful counter trends take place.
