CupAlert™
– Email Alerts When Price Approaches Pivot Point
CupWatching
has reached a new level – more extensive – made easier.
Now available as an option to those
subscribing to the CupWatch Del Report is the ability to receive an
Alert, via email, when the price of a stock approaches the Pivot Point
Price. This gives the
trader a tremendous advantage of getting into a stock just at the
precise time. We offer this
service for all those stocks reported in the DEL Report for both the Cup
with Handle and the Inverted Cup with Handle Daily and Weekly Symbols.
In order to capture the big move in a
breakout you must be prepared ahead of time and be aware the breakout is
near. When you receive the
DEL Report you should research carefully all stocks you want to consider
trading and place those in your watch list.
Then when you receive an Alert you can be ready to take action.
We do not wait until the Pivot Point has been reached to send the
Alert. We send the Alert
just prior to the Pivot Point so you will have time to act before the
breakout. Just because you
receive an Alert doesn’t mean you make an immediate entry in the
market. Remember you should
wait until the Pivot Point Price has been reached prior to entering a
position.
When you make an entry based on the Pivot Point
Price being reached intraday you must be aware of the following:
A stock must Close at or above the Pivot Point Price and the
Volume must be greater than 125% of the 50 day average in order to
be considered a legitimate breakout.
(Volume is not as critical for the Inverted Cup with Handle and
we will treat it differently). Our
Alert System is programmed to give you the alert at the most opportune
time. However if the
requirements for a legitimate breakout are not meant at the end of the
day or week depending on which time compression we are using (Daily
Charts or Weekly Charts) the CupAlert™ System is reset and will be
armed again for the next trading period.
Thus the Alerts will continue to be given each time the price is
hit until a legitimate Breakout occurs.
The following examples will help better clarify how the system
works..
The first chart shows what we would ideally
like to see. LS is the
Leftside of the Cup, RS is the Rightside of the Cup, the redline depicts
the Pivot Point Price.
On the day the price brokeout an Alert would have
been given just prior to the Pivot Point Price where the trader would
make a decision to enter the position or not.
Notice at no time prior to this day did the price get close
enough to the Pivot Point to trigger an alert.
On the contrary NNDS (below) after forming the Cup
with Handle formation came close or touched the Pivot Point Price
several times in the early part of the Handle.
Each one of these would have created an alert.
Entering a position on any of these would lead you to being
stopped out by the 8% rule as the price took a good dip prior to its
actual breakout.
However on the day of the Breakout it would have
been easy to see the CupAlert™ was justified as the price was moving
up fast.
LCRY (below) is a good example of a stock closing
above the Pivot Point Price and still not having sufficient volume to be
considered a breakout. Two
days ahead of the actual breakout on the first Cup with Handle (center
of chart) the price went well above the Pivot Point Price but ended up
closing well below the Pivot Point.
The next day the price Closed well above the Pivot Point but the
volume was well short of that necessary for a legitimate breakout.
The next day the stock took off with very strong volume thus
giving us a legitimate breakout.
You would have received a CupAlert™ on each of
these days. If you had
entered a position the first day you would have been alright as the
stock kept moving up. When
you do this you must keep a close watch until the stock does breakout.
The blue arrow by the second Cup with Handle formation to the
right shows the first day an Alert would be given.
Several times during the next few days the stock closed above the
Pivot Point Price but with insufficient volume for a breakout.
The red dot shows the Close for the breakout day.
These examples depict how our CupAlert™ System
works. You should study
these over carefully so you fully understand what the Alerts are telling
you. With practice you will
be able to catch breakouts with regularity.
Not all stocks breaking out are going to climb to the moon.
The overall market condition has a lot to do with how a stock
price reacts. Many stocks
will fall back after a breakout to start a new Rightside or even a new
Cup with Handle.
EMBT (below) had 4 failures before finally breaking
out from the 5th Rightside to go on and double in price.
Giving up on this stock too soon would have been the wrong thing
to do but few of us would have been able to stick it out.
Our CupAlert™
System would have been rearmed after each of the Rightsides plus 3 days
were formed.
Many of our clients trade these breakouts as day
traders or swing traders where they are in the market for very short
periods of time. This way
the overall markets do not affect their trades like they do long term
traders or investors. To
accommodate those clients we will include in our DEL Report stocks that
do not meet the high fundamental standards of the traditional
investor. To make it easier
to distinguish between the different grades of stock we have added to
the DEL Report. We have
inserted a new section called Non-Standard Cup and Handle where we will
include those stocks that have a well formed Cup with Handle but do not
meet the higher standards for Relative Strength, Earnings Per
Share, Accumulation/Distribution, etc.
We will not separate the Group I and Group II Stocks in this
section. These will appear immediately after the Group II Standard Cup
with Handle. Therefore it is important for you to do your research on
each stock ahead of time so you know which ones you will be trading when
an alert is received. Once
the stock goes into the CupAlert™ System it will stay there until it
breaks out or no longers meets the cup with handle criteria.
It takes months sometimes before a stock breaks out.
Normally you would have forgotten all about it until it was too
late. If the stock appeared
in our DEL Report you will know when it is reaching its Pivot Point
Price..
We tell you not to enter a position until the price
has exceeded the Pivot Point Price.
An exception to that may be to take advantage of the possibility
of a powerful gap up on breakout as depicted by the following chart.
Here the blue arrow depicts the day the Alert was
given. In both cases the
price was moving up rapidly. As
you can see if you waited for the price to cross the Pivot Point Price
you would have missed the start of a big move the next day.
CAUTION must be used when buying before the Pivot Point but with
the price moving up this fast there were no weak investors left in this
stock at that time. By
using our Cup Alert™ System to capture this move you will have a
definite advantage over other traders.
This situation avails it self to you quite often.
The key is to make sure the price is in a sharp climb for a few
days before the Alert.
The CupAlert™
will be emailed to you, within moments of the trigger price being hit,
using your official email address on record.
This process is completely computerized and requires no human
intervention to slow it down. We
can only send it to one email address.
If you are an Investment Advisor or Brokerage House and want
individual emails sent to additional members we will oblige for an
additional charge. This
will be dealt with on a case by case basis. We realize the importance of
getting this information to your members as quickly as possible and we
will work with you to do so.
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