PCLN Closed Short and Game Plan

I feel like I might just have gotten lucky on PCLN; normally Core short or long positions are long term and they need very little maintenance, once you get a good tactical entry, the rest takes care of itself, but I had one regret with PCLN, that I didn't take windfall profits when I had the chance.

Today PCLN was covered for a 26+% gain in a non-leveraged position in a market that has been rising for most of the year.

 PCLN was entered at an average of $761.79 which is where the yellow box is and precisely where the red trendline is in that box, so as you can see, the entry was near flawless. We had a bullish wedge that was showing 3C distribution, we knew before it broke out that the breakout would be a failure and it would gibe us a GREAT opportunity to enter short with minimal risk at a great price.

It's the first red arrow that I regret, a drop of 17+% in 1 day, today I made up for that, but with 2.5 months of opportunity cost. Note volume is up also today, all these little changes in character add up to the message of the market. I took a look at 3C and here's what I found.


 First of all, I want to be short PCLN again as soon as the opportunity presents itself and I feel like it's a great opportunity. This 4 hour chart shows the big picture and even the negative divergence in April that earned us 26+% in a market that has been moving up, is nothing compared to the leading negative divergence now. Essentially, long term PCLN is still a GREAT looking short, it's just a matter of the tactical entry. If you see the white box to the far right next to price, I'm thinking I may be able to get PCLN in that area, higher is even better.

Why close such a promising looking short? Nothing goes straight up or down and Wall Street runs a lot of manipulations and games, some to game you, some to allow them to re-position which is still gaming you, it is these moments that 3C is good at finding and letting us do what Wall Street is doing. In fact we see them doing it long before price moves in the direction of the underlying trade, that's because of the size they trade in, it takes more time so we have to look for certain things like head fakes and 3C multiple timeframe alignment to tell us when we are close to them being done.

 All of these timeframes essentially show the sale 2 positive and 1 negative divergence in the exact same place, the most recent is a positive divergence meaning probabilities are high that PCLN moves up very soon. 2 min

 3 min leading positive

 5 min huge leading positive

 10 min leading positive with most of the leading this afternoon

15 min leading positive.

I showed the last little base area of about 1.5-2 days, so far we have a day in and we may see a little more so some of the more nimble traders may be able to pull off a quick long, although I think a leveraged ETF is a better tool for a situation and timeframe that we are expecting, but this was enough for me to close the position and wait for a new opportunity.