Just a quick post looking at a few stocks that have decent looking charts and can be played via warrants, or warrants and options combinations.
When I worked in NY I had the privilege of attending a class taught by Steve Nison who wrote Japanese Candlestick Charting Techniques, Second Edition, as well as a few other books on candlestick charting.
Mr. Nison is a, if not the, preeminent candlestick charting expert, and I learned a ton from him both through his books and in the class.
But one of the most important things I learned was that candlesticks are just another way to visualize human behavior / psychological phenomenon in the market. This was important for me because it turned the candlestick patterns into something more tangible.
In any case, I highly recommend Mr. Nison’s book, and here are a few charts I like right now based on either candlesticks, or a combination of candlesticks and support / resistance.
- BAC. This is one I trade myself quite often, usually in some hedged form. I’m often long warrants and short calls, which I roll as expiration nears. It’s in a support area and looks about to gain some ground to the upside after bouncing at $15.40 the past few weeks.
- GM. This is one that a reader emailed me about recently because it has a warrant expiring later this year. It’s pulled back to support here. I’ll be following this one very closely the rest of this year and hoping for some action around the warrant expiration.
- SHLD. This one is interesting here as it pulled back from the spike to $46 a few days ago. It has solid support at $41 and there are definitely plays to be had with the warrants and options trading on the stock.