As of 01/20/2021
  Indus: 31,188 +257.86 +0.8%  
  Trans: 13,126 +225.85 +1.8%  
  Utils: 865 +7.27 +0.8%  
  Nasdaq: 13,457 +260.07 +2.0%  
  S&P 500: 3,852 +52.94 +1.4%  
YTD
 +1.9%  
 +4.9%  
 +0.0%  
 +4.4%  
 +2.6%  
  Targets    Overview: 01/13/2021  
  Up arrow32,000 or 29,600 by 02/01/2021
  Up arrow13,500 or 12,300 by 02/01/2021
  Up arrow890 or 800 by 02/01/2021
  Up arrow13,500 or 12,400 by 02/01/2021
  Up arrow3,900 or 3,625 by 02/01/2021
CPI (updated daily): Arrows on 11/2/20
As of 01/20/2021
  Indus: 31,188 +257.86 +0.8%  
  Trans: 13,126 +225.85 +1.8%  
  Utils: 865 +7.27 +0.8%  
  Nasdaq: 13,457 +260.07 +2.0%  
  S&P 500: 3,852 +52.94 +1.4%  
YTD
 +1.9%  
 +4.9%  
 +0.0%  
 +4.4%  
 +2.6%  
  Targets    Overview: 01/13/2021  
  Up arrow32,000 or 29,600 by 02/01/2021
  Up arrow13,500 or 12,300 by 02/01/2021
  Up arrow890 or 800 by 02/01/2021
  Up arrow13,500 or 12,400 by 02/01/2021
  Up arrow3,900 or 3,625 by 02/01/2021
CPI (updated daily): Arrows on 11/2/20

Bulkowski's Noven Pharmaceutical Trading Quiz

 

Released 11/23/2020.

NOVN: 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 / 8
chart pattern
What chart patterns can you find? Look for the following: descending triangle, symmetrical triangle, double top, double bottoms (2), and a big W.
Answers are on the next slide.
2 / 8
chart pattern

Price has broken out upward from this symmetrical triangle.

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?

Here's my notebook entry for the trade.

"Date: 5/18/05. Filled at: 17.44. Stop: 15.53. Upside target: 21, site of old resistance (March to April 2004) and a gap in Nov 2004 (21.30 to 22.06). With luck, this will complete a Big W out at 24-25. Future S&P direction (guess): Down as it's hitting overhead resistance. That might force the market to take a closer look at drug stocks, like this one. Flight to safety...

Buy reason: Upward breakout from a symmetrical triangle. The knot of congestion during the past week at 17-17.65 also signals a buying opportunity according to Schwager."

Continued on the next slide.
3 / 8
chart pattern

This chart shows the trading landscape as I saw it on the day I placed the trade. The Big W price target is in green. On the way, there's overhead resistance and a breakaway gap to push through first. I show the stop location in red, placed a few cents below the minor low. The congestion circled in green is a positive sign. Will it portend a winning trade as Schwager says?

The next slide shows the general market during that time.
4 / 8
chart pattern

This is the general market and it shows overhead resistance. How did the trade do?

See the next slide.
5 / 8
chart pattern

This is the day after I bought. "5/19/05. Stop raised to 16.23, just below the 62% Fib retrace." I must have thought that the stop was too far away. The Fib retrace is 62% of the A-B distance.

See the next slide for more fun.
6 / 8
chart pattern

7/22/05: I extended the expiration of the stop another month." The red line shows the price level. My broker places an expiration date on the stop loss order, which I renewed for another month. The congestion zone is circled in green. Price has trended down after the upward breakout.

Question: is it time to sell?

The next slide shows my answer.
7 / 8
chart pattern

I didn't sell because there was no reason to. My stop wasn't hit and I wanted to give this stock every opportunity to move higher. However, on the last day shown above, I became nervous about the stock. I canceled the stop order and manually timed the exit. Here's my notebook entry.

"Date: 8/19/05. Filled at: 16.557.

Sell reason: Downward breakout from right-angled broadening wedge, ascending. I tried to time it but would have done better if I sold it at the open in a market order."

The next slide shows yet another chart.
8 / 8
chart pattern

I sold before the decline really got going and saved myself some bucks. I lost 5% on this one.

The end.

See Also

 
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