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How To Hit Home Runs With Our Hit & Run Patterns

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Patterns are like X Rays on stocks' intentions.

They speak to us, letting us know where they’re heading.

Let’s take a look at two strongly trending names that we flagged for Thursday.

First up is AFRM, which was a long swing idea on Wednesday night’s Hit & Run Stock Report.

AFRM turned its 3 Day Chart down on Wednesday for the first time since exploding out of a Cup & Handle.

My 3 Day Chart Method does a good job of determining the trend and continuation moves.

Since AFRM closed at session lows on Wednesday, we used an Opening Range Breakout for entry as we didn’t want to wait for Trade Thru Entry on trade above Wednesday’s high.

AFRM triggered an ORB (Opening Range Breakout) at 89.21.

It exploded to 111 after hours on earnings.

The important thing to notice is that, following the Rule of 4 Breakout and the Cup & Handle pivot on August 25 which Hit & Run members caught, AFRM “kicked back” below the breakout point.

Most traders were probably flushed out; however, notice that AFRM held a rising trendline and its rising 20 day moving average before exploding the very next day.

As I said above, patterns are like X Rays. Smart money knew something was coming.

The pullback was probably a raid to buy more stock before the news.

Before Thursday’s open we flagged LSPD on the Hit & Run private Twitter feed as ripe to rally.

Why?

LSPD has been a Tractor Beam since its August Rule of 4 Breakout… on a gap.

Tuesday & Wednesday’s pullback was the first since the runaway move started.

Their two consecutive lower daily lows satisfied my Plus One/Minus Two buy pattern.

LSPD triggered an Opening Range Breakout at 118.78 and never looked back.

When it cleared the 120 strike, it opened the door to 125.

Clearing and sustaining above 125 opens the door for a second 360 degree cycle or two full squares up from the early May 55 low.

Blue, 55
Purple, 130

In sum, combining the Hit & Run patterns I’ve developed over a 35 year trading career that started back at the famous Drexel Burnham Beverly Hills office with my Square of 9 Wheel that integrates Time & Price gives you an invaluable edge.

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