As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22
As of 05/20/2022
  Indus: 31,262 +8.77 +0.0%  
  Trans: 13,491 +51.76 +0.4%  
  Utils: 991 +1.46 +0.1%  
  Nasdaq: 11,355 -33.88 -0.3%  
  S&P 500: 3,901 +0.57 +0.0%  
YTD
-14.0%  
-18.1%  
 +1.0%  
-27.4%  
-18.1%  
  Targets    Overview: 05/15/2022  
  Up arrow33,500 or 30,500 by 06/01/2022
  Up arrow14,700 or 12,400 by 06/01/2022
  Up arrow1,050 or 940 by 06/01/2022
  Up arrow12,800 or 11,000 by 06/01/2022
  Up arrow4,150 or 3,700 by 06/01/2022
CPI (updated daily): Arrows on 4/21/22

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.

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