By popular request, I’ll be looking more frequently at this vehicle, since it seems to have a small but devoted fan club in the Rick’s Picks chat room. At first glance, the 15-minute chart looks like one I might have culled for a lesson on ‘mechanical’ trading — i.e., a perfect’10’. Notice that the precise pullback from p2 gave way to an almost equally precise low at p. Blastoff from that launching pad took the futures almost precisely to D the same day. This vehicle wants to go higher! This is particularly evident in the stab through D that occurred the minute after after-hours trading began. Did I mention that this vehicle wants to go higher? Most immediately, however, we should look for a stall at exactly 1177.60. That’s the ‘D’ target of a bigger, bullish pattern on the daily chart, where A=1059.50 on 3/24; p=1130.15, and p2= 1153.88. Use these coordinates to identify and trade it, especially if it surprises by pulling back to p2. A ‘mechanical’ entry there would take an 1146.00 stop-loss. Keep in mind that TFM would need to spend another two days above the pink line for the trade to become viable. If it breaks below p2 before then, we could try a mechanical entry at the red line, stop 1114.50. ________ UPDATE (June 3, 9:30 a.m. EDT): The all-but-inevitable next leg up has been postponed for a day or two by a shakedown this morning that has opportunistically leveraged bearish payroll numbers to create bargains for DaBoyz. The news will have altered expectations of tightening this summer for perhaps a New York minute, but we can be nearly certain the dour mood will pass shortly.
