PCLN TRADE SET-UP (LONG AND SHORT TERM)

Kind of like AAPL, PCLN may give us a call option position which is a piggy back ride to the head fake move area, this is a speculative position, way more so than AAPL which so far, is doing exactly what I posted (as it has already hit 3 of my alerts.The bigger and more sensible trade is PCLN short (I prefer an equity short for a position trade, but if a nice put set up arises I wouldn't turn my nose at that either).

*In fact, PCLN is even doing what I was expecting right now before I could even get these charts posted, but that's fine.

Here's what we have and if you are using the Trend Channel, this is a fantastic example of why it's usually best to get out once the Trend Channel stops you out.

 This is not a very impressive divegrence, AAPL's is better, but there's a small one there along the lines of what is being set up in HYG.

 This may be a little bigger of a divergence or "W" bottom as the 3 min chart shows.

The interesting divegrence is here on the 5 min chart as it has built i so quickly.

I'd consider a call trade here with the same criteria as AAPL, a move below today's intraday lows with strong intraday 3C signals confirming accumulation of the stopped out shares.

Longer term on a 60 min chart, pay attention to where PCLN goes negative after a beautiful uptrend confirmation at the green arrow, this will matter in a few charts...

 60 min 3C / PCLN.

The 4 hour chart shows a very strong distribution trend, again pay attention to when and where it started.

Now on a daily chart, we have a funky, but real top in PCLN, note where PCLN transitions from trending stage 2 to lateral stage 3 top, and just to drive the point home and show you what I mean about Trend Channel stops being worth taking when they show up...

 The Trend Channel held this entire move without a single false stop for at least a 110% gain and then stopped out at the red arrow, pretty well in to the top price pattern. If you had stayed in PCLN, you'd have gained an additional 4.56% over a 5 month period.

This is what I'm always trying to demonstrate, when the Trend Channel stops out, there's a serious change in character and even though a little more upside may be added, the easy money, the trending trade is over and something else is on its way, in this case a choppy top and you would have left 4.65% on the table for 5 months of risk exposure, you'd have been much better off taking the gains and putting them to work in a new set-up / asset.

Also, the TRend Channel is showing a change in character in price which 3C was showing a bit before, warning that you might start looking for your best exit as there's not much left in the trend.

From this longer term perspective, PCLN is a short in my book right here, but if we are trying to get the best price and timing (as we are), then we may have a little bounce worth looking at, but I personally would want some short exposure in PCLN right now.

I showed you the intraday 3C charts, if there's a strong divegrence on a stop run on those intraday charts, then a quick call position in some weeklies may pay off, but it's speculative, the larger position is entering the short or adding to/filling out the equity short in PCLN. While I doubt $1300 is on the table, it is a centennial number and psychological magnet, otherwise I'd be looking for a bounce somewhere between here and 1250-1275 and I'll be setting my alerts for all of those levels.

I'll let you know if I decide to take any of the shorter term trades.