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Serial Killer Trades: RDNT On the Radar

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One of my favorite strategies from my Hit & Run books is the 1 2 3 Pullback.

This is a 3 day pullback in a strongly trending stock — up or down.

I created the strategy in the late 1990s after seeing that momentum moves typically don’t see more than 1 to 3 days against their trend before continuing in the direction of the underlying trend.

The strategy works just as well today as it did for me in the go-go market of the late 1990s.

RDNT broke out on June 7 with an expansion of range and an expansion in volume (Expansion Range Breakout & Expansion Volume Breakout signals).

Notably the breakout was 90 days/degrees from the early March upthrust.

WD Gann was the first to point out the synergy in these 90 day/degree decrements of time in stocks.

The early March breakout was on big volume but never followed through; however, it put RDNT on my long radar.

I’ve been stalking it ever since.

In early June, the second mouse got the cheese as RDNT came out.

This time it cleared a 3 point trendline, triggering a Rule of 4 Breakout as well.

The first pullback, which was a textbook 1 2 3 Pullback set up, played out into Monday.

We used it as a long idea in that night’s Hit & Run Nightly Stock Report.

RDNT was a Torpedo on Wednesday — saying “damn the torpedoes, full steam ahead.”

As the market tanked, RDNT was Mule’s Breath — as in stronger than.

It closed at session highs.

But the icing on the setup that lets you have your cake and eat the profits for maximum potential is my Square of 9 Wheel.

Measuring from the 17.80 swing low shows that one full revolution of 360 degrees up is 38.

In sum, there was a strong likelihood that come hell or high water, RDNT would be magnetized to this 38 region.

Selling is an art. Anyone can identify a breakout and hop on a train as it leaves the station.

How do you identify when to sell into strength before an institution decides to trim and squashes your gains? This is the benefit of marrying pattern with the Square of 9 Time & Price Calculator.

Pos RDNT

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