Chart Request and Trade -Joy (short)

After what I explained in the DE post, JOY is the perfect follow up because it is doing what I warned DE would do, meaning JOY also looks like a good short sale candidate, but we need to acknowledge and play by the new rules that are meant to use technical analysis against traders. Once you understand how and why, it is a huge advantage for you.

 Again, starting with a weekly chart, we see a nice trend, not too volatile and then a large volatility area typical of a top.

 On a daily chart we see some of the new way Wall Street manipulates trades, for example the head fake/shakeout where JOY makes a new closing high (yellow arrow) and then loses 12% in 4 days only 2 days later. The head fake is there for a reason, traders love buying new highs, when the stock falls, they are trapped and sell at a loss increasing supply and sending prices lower, faster. This is a bull trap. However, as I mentioned DE is likely to see a volatility shakeout, JOY has already started it with a 4+% move today alone. The shorts that got involved on the breakdown are now being tossed from the trade, even though the trade i almost certainly a worthy short, it's still timing and understanding how Wall St. manipulated the trade; their goal is to make as many people wrong as possible, even when you are right.

 Here JOY breaks the Trend Channel, at this point, I consider the back of the trend to be broken, but it doesn't mean this is the best entry to take advantage of a real trend, not yet...

 Money Stream also shows there's a clear problem in this stock, smart money has moved out.

 The same can be seen on the 60 min 3C chart, the October lows saw the largest accumulation and this the strongest move up, the December accumulation was not as strong and the move up was not as strong, but the bigger picture is these moves up have been used to sell/short in to strength.

 The 15 min chart since the October lows with accumulation, by contrast you can see how much shorter the December accumulation period was and the selling in to strength.

 Here's a closer look at the same chart, notice the recent accumulation for the volatility shakeout we are seeing today.

 The 5 min chart is not confirming the move, that' because the move is almost certainly being used to sell/short in to strength.

It's a bit more difficult to say where the target zone is here because the accumulation period for the shakeout was longer, I would guess at least a test of resistance and maybe a head fake high... Watch volume as it moves up and watch for declining volume, smaller candles or smaller daily ATR and a loss of momentum as well as the usual tricks like a head fake breakout. JOY should make for a good short once this shakeout is done. If for no other reason, it's worth watching just to understand how Wall Street operates, you won't find this in TA text books. I'll keep this on a watchlist as well.