Head and Shoulders Notes and SPY Position

The head and shoulders formation is a widely used indicator and as such is vulnerable to the market's need to frustrate the most people possible. So I need some hard-rule confirmations so I won't get whipsawed in this market.

This is why according to Smita Sedana (an amazingly smart person posting on Minyanville - my favorite site/blog/etc...), "volume is very important in this pattern. The pattern is consumated on a close below the neckline by about 3%. Pattern confirmation would only happen after a decisive break of the bottom Bolinger Band, 50-dma, and 200-dma."

Her chart is included which is also a glance at the SP-500 right now.

Intuitive Surgical Ready for Run ? (Buy: ISRG)

One of my favorite companies in terms of ideas is the maker of the da Vinci remote surgical systems - Intuitive Surgical. The company reports their quarterly earnings on 7/22 so while that event will almost certainly translate to a fair sized move on way or the other (usually ISRG's earnings days have about a 10% range), I think ISRG is getting ready to explode into the end of summer.

Idea: Buy ISRG @ $142-148

Stop: Sell ISRG @ $136

Target: Sell ISRG @ 166-170, 210-220

Risk-Reward: 2-1 min / 7-1 max

Time for Gold

The Gold Miners Index (GDX) looks like a good buy on the daily charts. I have been waiting patiently for a good entry for the second half of my GDX purchase and missed my 34 limit order by .05 cents. I will be looking to enter at around 35 so I don't feel like I am chasing with a stop at $32-34... or $30-32 for those that have more cahones than I do.

First post. Trade or idea if this works out (in the next month) then this is my 2 dollar bill on the wall... and I will be a millionaire. Well I will be a millionaire anyways so... yeah! Woo hoo!