Single Stock Trade Idea Generation and Strategy

Greg Harmon, CMT, President and Founder Dragonfly Capital Management LLC

Dragonflycap.com

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• Purpose of Technical Analysis -Trend Identification • Review Influencers to get Landscape • Review Indexes Themselves • Potential Catalysts for Change • Identification of Ideas Within the Trend

Why Do We Perform Technical Analysis?

• Summary of Influencers • Intra-Market Relationships • Identification of Possible Macro Causes for a Shift in

Trend • Identification of Events that May Affect the Trend

What Do the Influencers Tell Us?

• Perspectives From the Index Charts • Other Influencers

– Copper – Moving Average Breadth Measures – Bonds

The Trend is Identified – What Could Signal A Change?

MTA Webinar

• The Previous 4 slides were a high level process overview from a Webcast for the Market Technicians Association (MTA) presented July 13, 2011 and available here:

The Next Six Months: A Macro Technical View of the Major Indexes with Greg Harmon http://www.mta.org/eweb/dynamicpage.aspx?webcode=videoarchives

• Sector analysis • Individual setups • Inter-Market trades

Trend Identified, Risks Assessed, Now What?

Individual Stock Trade Set Ups

• Horizontal Support and Resistance • Trendlines • Patterns • Fibonacci Extensions and Retracements • Simple Japanese Candlestick Techniques

Horizontal Support and Resistance

Horizontal Support and Resistance

Horizontal Support and Resistance

Horizontal Support and Resistance

Trendline Support and Resistance

Trendline Support and Resistance

Patterns

• Bear Flags (there are Bull Flags too) • Head and Shoulders • Diamond Top • Triangles

– Symmetrical – Descending – Ascending

• Channels

Flags

Flags

Head and Shoulders

Head and Shoulders

Diamond Top

Triangles - Symmetrical

Triangles - Descending

Triangles - Descending

Triangles - Ascending

Triangles - Ascending

Channels

Channels

Fibonacci Retracements

Fibonacci Retracements

Japanese Candlestick Simple reversals – Hammer/Hanging Man, doji, Shooting star,

Evening/Morning star

Japanese Candlestick Simple reversals – Hammer/Hanging Man, doji, Shooting star,

evening/morning star

Japanese Candlestick Simple reversals – Hammer/Hanging Man, doji, Shooting star,

evening/morning star

Japanese Candlestick Simple reversals – Hammer/Hanging Man, doji, Shooting star,

evening/morning star

Other Factors

• Indicators (RSI, MACD etc) • Short Interest • Events (Earnings, split, etc) • Options Activity

A Word on Timeframes

• All daily – swing and position traders • Day Traders – 5, 15, 30 minute charts • Position traders/investors – daily/weekly

Dragonflycap.com • Macro Week in Review/Preview to establish the trend and the inter-

market factors that may influence that trend. • Weekly trade ideas using stocks, options or both with the entry,

target and risk management strategy for each. • Trades based on pattern and trend breaks, earnings plays and

others. • Adjustments to the strategies as required. • New trades will be added during the week with the strategy for

trading them. • Direct access for questions and clarifications. • Sign up at Dragonflycap.com and select Get Premium tab

Single Stock Trade Idea Generation and Strategy

Greg Harmon, CMT, President and Founder Dragonfly Capital Management LLC

Dragonflycap.com