Thursday, May 14, 2009

Vegas Baby Vegas

LVS which I shorted on Wednesday,  is a perfect chart for a couple of reasons.  Let's look why:

First, LVS has experiences the life cycle of gaps.  In April LVS forms a breakaway gap breaking through resistance on volume.  Then the LVS makes a series of gaps making  Runaway Gaps.  Then in the beginning of May LVS gaps up to it's highs but begins to chop around in this area.  This group of candlesticks now formed a Island Reversal Top. Then the market gaps down yesterday, signaling a change in the trend for LVS.
 
Even if you were not able to spot all the gaps in LVS, there was another pattern that was easy to spot as well, this is a Bearish AB=CD pattern.