Hanging On
After the ‘Reversal Ready’ update, link here, Cadence never looked back.
Now, we’re at the edge of a wedge boundary with earnings coming up soon, link here.
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The Danger Point®, trade mark: No. 6,505,279
‘Spring’ Position
DoorDash, has been traded once to the short side this year: DASH-26-01.
That trade was closed out (covered) on January 12th, profit of 7.58%.
Note, from the link above, after January 7th, and the ‘test’, price action began an immediate decline, to now.
An error on the trade, was not maintaining the position, and closing out this past Friday 🙂
At this point, we’ve penetrated support, now in Wyckoff ‘spring’ position.
Spring position does not guarantee a rally. It just means the market may attempt to move higher and take out any shorts late to the party (not advice, not a recommendation).
DoorDash DASH, Daily
Earnings release, February 18th, after the close.
As we’ve seen with the Amazon and O’Reilly collapse, Ball Corp., CorPay Inc., DaVita HealthCare launch (and others), response to earnings are all over the map.
There’s no telling what’s going to happen with earnings and DASH (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Stretched, at All-Time Highs
We’re looking for The Danger Point®, where the risk (of being wrong) is least (not advice, not a recommendation).
This method applies to going long as well as short:
Buy or sell (short) at the edge.
Looking at the chart of Texas Instruments, you’ll have to judge for yourself if we’re at that edge.
Texas Instruments TXN, Daily Close (12:37 p.m., EST)
Using the data from yesterday’s update, link here, we’re at a point that could get very interesting.
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The Danger Point®, trade mark: No. 6,505,279
Once, in a Generation
Michael Bordenaro’s latest update, had this in the comment section (paraphrasing):
‘It’s likely, few people realize how far this is going to go, and how long it’s going to last.’
With that said, we’ll look at a once-in-a-generation event, Texas Instruments.
Not since the height of the dot-com mania, has there been a repeat of the indicator shown below.
Texas Instruments TXN, Monthly
Two massive Force Index spikes, a generation apart.
In the dotcom mania, the spike was not the top; that came a month later.
For the A.I. mania, TXN posted its spike last month (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Massive Wedge Throw-Over
The last update on TEL, was over six months ago, link here.
The chart in that update showed a massive long-term wedge.
At the time, price action was right at the upper boundary.
What came next, was an apparent ‘throw-over’ that’s lasted six months (not advice, not recommendation).
If price action declines decisively back into the wedge, we’ll discuss measured move(s) at that time.
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The Danger Point®, trade mark: No. 6,505,279
After Hours, Tomorrow
ORLY, reports tomorrow, after-hours.
Since we got a ‘spring’ by penetrating support, it’s possible, price action will resolve itself by posting an up-thrust (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Straight into Resistance
Palantir released earnings after the bell, link here.
The magenta line shows how the ‘good news’ is being received.
As of this post (6:40 p.m., EST) price action is in a narrow range, hitting the underside of resistance, near a downtrend line (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Last Gasp?
If you believe the financial press, link here, then we’re in the clear for Corning as it’s part of the A.I. mania.
Throw in some analyst ‘buy’ ratings and it’s good to go. 🙂
If we actually look at the truth, the price action itself, it may be telling us something different (not advice, not a recommendation).
Corning GLW, Monthly
All-time highs, link here.
The long-term perspective shows us it took nearly a generation for GLW to get back to ‘dotcom’ levels.
In fact, the news release in the first link above, resulted in the gap-higher straight into decades long resistance.
Now, you have to ask yourself: “Do you feel lucky?”
Is GLW, somehow going to miraculously push through (and hold) that resistance of many years, on just one attempt?
In the markets, anything can happen.
Next up and depending on price action, we’ll look at the daily chart.
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The Danger Point®, trade mark: No. 6,505,279
Earnings, late February, early March
Earning release for CVNA, CRWD, and CDNS, are scheduled here, here and here.
All three charts are in the same, or similar position.
Q: Anyone know?
A: Recently penetrated support or are testing that penetration.
Technically speaking, they’re all in Wyckoff ‘spring’ position (not advice, not a recommendation).
Chart analysis to follow.
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The Danger Point®, trade mark: No. 6,505,279
Pass, or Fail?
Odds of passing the test and moving higher, are better than a throw of the dice … if volume contracts (not advice, not a recommendation).
Admittedly, at this point in the early session, it looks a little shaky.
Price action has come all the way down to support and is attempting to bounce higher.
Carvana CVNA, Daily
Contraction of volume (from the prior session) for the day, does not guarantee anything.
It just points the probabilities for a mover higher (not advice, not a recommendation).
Financial ‘Mystery’ Solved?
Judge for yourself.
At this link, Carvana is discussed but the comments provide a potential answer.
Buried between 25 – 30 comments down, a statement that once read, makes perfect sense.
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The Danger Point®, trade mark: No. 6,505,279
The Danger Point® 