As of 09/26/2022
  Indus: 29,261 -329.60 -1.1%  
  Trans: 11,999 -129.90 -1.1%  
  Utils: 953 -25.04 -2.6%  
  Nasdaq: 10,803 -65.01 -0.6%  
  S&P 500: 3,655 -38.19 -1.0%  
YTD
-19.5%  
-27.2%  
-2.8%  
-30.9%  
-23.3%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow1,000 or 950 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22
As of 09/26/2022
  Indus: 29,261 -329.60 -1.1%  
  Trans: 11,999 -129.90 -1.1%  
  Utils: 953 -25.04 -2.6%  
  Nasdaq: 10,803 -65.01 -0.6%  
  S&P 500: 3,655 -38.19 -1.0%  
YTD
-19.5%  
-27.2%  
-2.8%  
-30.9%  
-23.3%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow1,000 or 950 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/13/22

Bulkowski's Alaska Air 2 Trading Quiz

Released 2/11/2021.

ALK: 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 / 3
chart pattern

What chart patterns can you find? Look for the following: symmetrical triangle, (small) broadening top, inverted and descending scallop, descending scallop, Adam & Adam double top, Eve & Eve double bottom, head-and shoulders top, Big W.

Answers are on the next slide.
2 / 3
chart pattern

The red Qtr symbol in the upper right of the chart shows the release of quarterly earnings. The red circle identifies the price bar on the release date. It's difficult to see, but price broke out downward from the earnings surprise.

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?
My answers appear on the next slide.
3 / 3
chart pattern

The scaling is different so it may take a bit to adjust to the new chart, but the red vertical line shows (to the left) where the last chart ended and the new one begins.

Answer 1 (buy?): The downward breakout suggested a short sale. However, price recovered during the next two price bars (visible on the prior chart), so it's best not to short. Price is near the yearly high, so you don't want to short a stock making new highs but stick to one making new lows. I see no other reason to own this stock or trade it.

Answers 2 (target?), 3 (stop?): Don't trade this one, so the answer is moot.

Price continued moving up so a short would have cost you money, at least on paper. The awful-looking head-and-shoulders top (LS, H, RS) that formed was a much better indicator of price turning lower. When it confirmed then that was the time to short the stock. With the cost of jet fuel what it is (back then), that's not a bad bet providing you covered near the October low.

The end.

See Also

 
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My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
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