After Hours Trend with Confirmation Pattern

Apr 21st, 2010 | By | Category: Mike Bellafiore's (Bella's) Blogs
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After the Close it can be tempting to leave the battlefield. I am tired. I could use a snack and some liquids. There are some emails to return. I didn’t check out that rain dance baseball video on Youtube yet. It is so nice out maybe I can sneak out early for a run. Who needs to risk taking a rip right before heading home and watching PTI?

QCOM has offered those who fought all the human thoughts above excellent trading opportunities the last two earnings reports. And QCOM has offered my favorite after hours pattern- a stock that trends with repeating selling or buying in the direction of the trend.

We saw this After Hours Trend Confirmation Pattern in QCOM after its earnings. QCOM sharply traded lower to 40. Buyers and sellers battled at these lower levels. But 40 would not lift the offer. The seller just would not lift. He sat there as an immovable object. In this day of HFTs around every corner, when do we see sellers frozen at the same price refusing to lift?

So Ram Jam and I got short 99c. 75c presented some support. But then finally dropped sending QCOM to the next serious buyer not until 39.10. Chop!

I love this pattern. QCOM started an identifiable pattern. Repeating selling was clear on the tape. And we shorted with the trend just in front of the repeating seller.

Perhaps you can learn to make this intraday pattern your own.

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