How To Pinpoint Picture Perfect Setups: VUZI

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Hit & Run members have taken long swing trades in VUZI several times since December.

We’ve probably taken more points out of it than it’s trading for.

It’s a trader’s dream when they find a stock that adheres like clockwork to technical.

VUZI responds well to my 3 key factors for identifying explosive moves before they happen.

1) The 3 Day Chart (and the 3 Week Chart)

2) Moving Average Pinball

3) The Square of 9 Wheel

The following daily VUZI shows it turned its 3 Day Chart down on March 5, coincident with it tagging its 50 day line for the first time since December.

The 3 Day Chart turns down with 3 consecutive lower daily lows (intraday).

Notice that VUZI also turned its 3 Day Chart down on January 29.

At that time, it kissed its rising 20 day moving average leaving a Holy Grail buy setup (a test of the rising 20 day m.a.).

The first correction struck the 20 day m.a. while the second correction struck the 50 day m.a. for a Moving Average Pinball long setup on March 5.

So on March 5, we had a picture perfect trifecta long setup:

1) VUZI turned its 3 Day Chart down

2) It struck its 50 day line

3) It rebounded off the 50 day leaving a Lizard buy signal. This is a new 10 day low with the open and close occurring at/near session highs. In other words, the stock leaves a 10 day Bottoming Tail.

Hit & Run members went long.

VUZI back and filled but exploded again as it reclaimed its 20 day moving average.

At the same time, on Friday VUZI reclaimed a broken trendline, putting it in a strong position to attack prior swing highs.

The Square of 9 below shows that 3 squares of 90 degrees down (270 degrees) from the 26 high is 13.50.

Notice that on the low day VUZI rebounded off its 50 day line and 12.74 to close at 16.04, decisively holding the 13.50 “square.”

Orange is 26
Green is 13.50

When multiple setups employ my 3 Day/Week Swing Method, Moving Average Pinball and the Square of 9 line up for “Combo” buy (or sell) signals, the stock is screaming that the Line of Least Resistance is higher.

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