LDK Breakout

Huge surge here. $65 to $70. A.k.a 7%. Notice the breakout occurred at exactly $65.00, which is yesterday's low.

AAPL Teases, Finally Breaks Down

AAPL formed a descending triangle this morning. It looked as if it had fallen through the floor and was about to head lower, but then it turned and bounced back above the line of support - what a tease. This is what is called a bear trap. If you're playing breakouts/breakdowns, you need to watch out for these. About 30 minutes later AAPL reached the tip of the death triangle and finally broke below support.

Later in the day, AAPL formed yet another death triangle - coincidentally the sloped portion of the triangle was formed using the exact same line as the morning death triangle.

Day Trade RIMM

It's been a crazy ride for the market lately - today was no exception. Currently I have all my money in cash, waiting on the sidelines. The market can't quite figure out where it wants to go, so I'm waiting until it figures it out. The recent volatility, however, makes for great day trading.

RIMM is a great stock to day trade. It is highly liquid - usually the spread is only one or two cents. The stock has a tendency to "broadcast" its next move, with clearly recognizable, tightly-formed patterns. It seems to have a particular affinity for the descending triangle formation.

RIMM & CSCO Breakdown