As of 09/25/2020
  Indus: 27,174 +358.52 +1.3%  
  Trans: 11,270 +152.52 +1.4%  
  Utils: 808 +12.20 +1.5%  
  Nasdaq: 10,914 +241.29 +2.3%  
  S&P 500: 3,298 +51.87 +1.6%  
YTD
-4.8%  
 +3.4%  
-8.1%  
 +21.6%  
 +2.1%  
  Targets    Overview: 09/14/2020  
  Up arrow28,650 or 26,000 by 10/15/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20
As of 09/25/2020
  Indus: 27,174 +358.52 +1.3%  
  Trans: 11,270 +152.52 +1.4%  
  Utils: 808 +12.20 +1.5%  
  Nasdaq: 10,914 +241.29 +2.3%  
  S&P 500: 3,298 +51.87 +1.6%  
YTD
-4.8%  
 +3.4%  
-8.1%  
 +21.6%  
 +2.1%  
  Targets    Overview: 09/14/2020  
  Up arrow28,650 or 26,000 by 10/15/2020
  Up arrow11,750 or 10,600 by 10/01/2020
  Up arrow845 or 775 by 10/01/2020
  Up arrow11,800 or 10,400 by 10/01/2020
  Up arrow3,600 or 3,200 by 10/01/2020
CPI (updated daily): Arrows on 8/18/20

Bulkowski's Abgenix 2 Trading Quiz

 

Released 5/25/2020.

ABGX 2: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 5
chart pattern
What chart patterns can you find? Look for the following: scallop, diamond, 2 head-and-shoulders, broadening top, high and tight flag.
Answers are on the next slide.
2 / 5
chart pattern
Price after the head-and-shoulders bottom in April has closed above the down-sloping blue neckline.
Question 1: Do you buy, short, or avoid trading this stock?
Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
General market conditions are on the next slide.
3 / 5
chart pattern
This is a picture of the general market, represented by the S&P 500. I show a descending, broadening wedge, a chart pattern I didn't see when I took the ABGX trade. I show the green line as when price began forming the left shoulder of the head-and-shoulders bottom in ABGX.
How did the trade go? The 3 questions answered on the next slide.
4 / 5
chart pattern
Question 1: Do you buy, short, or avoid trading this stock? Buy long.
Question 2: If trading this one, what is the target price? 16-17.
Question 3: If trading this one, what is the stop price? 12.94

Here's my notebook entry for the trade.

"4/23/04 I believe price will rise to 16 to 17, and, if lucky, push through to make new highs. Earnings are due a month from today, so that gives us room. Downside is 12.94, stop, for a loss of 12%.

Filled at: 14.66 to 14.67. Buy/sell reason: Head-and-shoulders bottom upward breakout. Mood: buoyant but rushed. Wanted to get this in before the close and it may be a hip shot. I'm depending on [the] head-and-shoulders to perform. S&P direction over pattern lifetime: Downward. Future market direction (guess): Hard to tell. I expect market to rise for a few days until tagging earlier ascending triangle then declining, forming a large double top. Confidence, will trade work? Yes. Confidence is high. Stop: 12.94, or 12%. Upside target: 16-17.

The next trading day, price shot up as the above chart shows. It blew through my 16-17 target and topped out at 19.50, but closed much lower, at 17.70.

Here's what the Wall Street Journal had to say about the move the next day: "Small companies that are developing cancer treatments saw their shares soar after large-caps Genentech and OSI Pharmaceuticals reported positive data from a late-stage trial of Tarceva, a lung-cancer treatment."

Question: Do you hold onto the stock for additional gains, sell, or buy more?

The next page shows how I handled it.
5 / 5
chart pattern

Here's my notebook.

Date: 4/27/04. Filled at: 18.308. Sell reason: stock jumped 3 points yesterday on hype. Mood: cautious. I expected the stock to give back almost all of its gains, but it was up this morning, coming down. A quick decline often follows a quick rise.

As you can see, I sold a day after the stock peaked and made 25%. Not bad for a 3 days of work.

The end.

See Also

 
Top
 

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

Copyright © 2005-2020 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.

Home Advertise Contact Donate Links Privacy/Disclaimer