The Name Of the Game

“Stocks don’t move, they are moved.” – Jack Cooper

QDEL was an explosive Gap & Go on Monday.

It closed at 158.60 on Friday, gapping up to 189 on Monday and running to as high as 210 on news about Covid testing.

After the close, President Trump mentioned QDEL.

I guess the buyers on Monday morning are just good chartists.

You think maybe someone knew something?

Be that as it may, a weekly QDEL shows the launch last fall from a weekly Rule of 4 Breakout, a breakout over a triple tops.

Two things to notice:

1) The backtest of the breakout point

2) The first weekly Holy Grail buy signal—the first pullback to the 20 week moving average.

Many years ago, William O’Neil told me that 40 to 50% of breakouts pullback to probe the breakout point.

Notice the large range outside up week following the test of the 20 week moving average.

Notice the first turndown on the Weekly Swing Chart, which set up a TD continuation buy — a 1st Turn Down signal.

Last month subscribers bought OPK, which produces Covid tests and has a deal with New York State.

OPK doubled.

I can’t help but think it may just be coming off the launch pad — like QDEL last fall.

“The cheap get cheaper

The dear get dearer.” – Marty Zweig

99.999% of traders have never even seen the Square of 9... let alone understand its potential.

Do you dare to be different?