Setups in the Tech Giants
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Setups in the Tech Giants

John F. Carter 1/10/2014

Welcome to the free video. We're going to talk about a couple of different plays that I put on today and yesterday. The first one is CMG and what I'm doing here is looking at 240 minute chart and it's kind of drilling down to a 15. And what I did here is essentially just doing -- looking for that 4 hour squeeze. And you can see here how we've just kind of been trading around this Voodoo line here. And you gotta remember this is the second most important one, it's the second strongest one. And then, as we saw this I can then drill down to a 15 minute chart and then kind of looked to time it. So, this is what we did, is saw this setting up, drilled down here and then waited for -- and you know, this is an up trending stock -- so the squeeze is an up trending stock. As we're consolidating around here then what we're looking for is a squeeze with a positive B wave to then push it up to the next one. OK.

So for yesterday I took a -- now I actually try, typically, on stuff like this I deal with the options. But I just -- for CMG the option spread is so wide I just wasn't getting filled. I actually tried to do 30 calls. In the money I couldn't get it so I just ended up buying the stock and sold some 530 puts. And then I was trying to get a pretty massive debit spread. I could only get filled on one contract, so that's what it's setting up as right now. I ended up taking a little bit more margin but the main point is that this is just a very clean set up.

What I'm looking for ultimately is that you can see another squeeze setting up here, and looking for this to kind of punch up into where I would want to take about half and then see if we could actually break out to new highs and have a symmetrical move. And a symmetrical move would take us to about 560 bucks. OK. So I like that one quite a bit.

Another one I did today on the downside was Apple. Now here on Apple we don't have anything on the 240 minute chart for a squeeze. What I was looking at was a 39 minute chart if I recall correctly. Yeah, so we had a 39 minute chart and then this is, to me, is kind of a classic set up as well with the Voodoo lines. You break the Voodoo line and then if you have a squeeze like this, essentially telling you the direction is lower then you know, the next time it comes back up that's the time to kiss it goodbye and you can get your position and then look for a continuation to move lower. OK. And so I did that with Apple today just buying some puts and there's just a nice clean...nice clean, kind of a set up. And then what I did is I sold 20 of the calls that expire tomorrow, of the 540s and then bought a hundred of the 550 puts that expire in 8 days. OK. I'm just looking for a kind of continuation there -- and just as a shorter term play. I'm not looking for something big here. I'd be completely fine with a move to the next minor Voodoo Line which is $530.

And then for Amazon I don't have a position in AMZN. I've just been kind of stalking it. But just trying to give you an idea, you know here -- Amazon's a pretty volatile stock so there haven't been a lot of squeezes. So you know here there was a squeeze -- and again remember this is the most important line. The green one's the second most and the white are the third most. And remember, these don't change. These are here like for years. They don't change every day, or every week, or every month. And you can just kind of see here the movement. First you had the squeeze. And typically a squeeze will take you through multiple ones. So we got to the second one, and then we were seeing we're just in between these two. And it's a great place to you know, sell of course Iron Condors and step outside of that. Now here we had a squeeze to the downside, so that took us here and that halted it. OK. And then you know on something like this when you're just -- what will happen is that they just act as magnets. And you're just kind of like, OK. Now we're here and we just chop, chop, chop, chop, chop. That's typically again a good time to sell premium because it'll hang out there for a while and you know, oh it came up there and stopped -- or stopped at this one and came back up. And then finally when it breaks through it'll typically go pretty quick. So bam, consolidation, bam, you know and then bam almost at the tick there. And then now the next one that I'm looking at is actually a solid test of 410.

So anyway it's just a good way to manage these things and to take targets and for entries and stuff like that too. A lot of times if I'm traveling I'll just sit there and say wow, Amazon's up here I'm going to you know, place some orders down here at these key levels and then if it comes down there I want to get it. I don't have to sit there and stare at the screens.

I've gotten a lot of questions from some of the newer folks like, what are the Voodoo lines? How do I get them? Well the Voodoo lines are a proprietary indicator that have been developed. They are -- we're doing a whole webinar on kind of what they're based on. But they're essentially levels where you kind of take some Elliot waves of highs and lows combined with some timing and then those levels just stay there all the time. Like in the bonds and the notes those levels have been there for decades. And it's great. They're very reliable levels to buy and sell again, you know, commodities -- Forex and some of the high profile stocks.

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This is something I found to be the most consistent tool in terms of buy and sell against, for making both shorter term and longer terms gains in trading commodities, Forex markets and then options on stocks as well as the stocks themselves. So you'll see me using these on my charts every day this year whether you're in the trading room or looking at my videos. And if you'd like to have these yourself, this is how you get them. And then what you do is -- you can just scroll down here and you know, if you just want the one, that's great. Just click check out, here. If you'd like to get both for that discounted price, click check out, here and you will be good to go. All right. Looking forward to a great trading year with you guys in 2014. Have a good night and we'll see you at the next update.