The pattern I am trading is an avalanche ala Toni Hansen. An Avalance is the first low(marubozu) and lower low(break in the bear flag) that starts a new downtrend. The break of support on the bear flag/base is my signal. Now the flags still need to form, but the large down day on such strong stocks at least gives me the potential for this type of setup.

Thanks for taking the time to post. Happy Trading.

Jonathan

I’m curious what the signal(s) is (are) that will eventually cause you to open up a short positions.

FWIW, I am currently short BIDU, GRMN and DRYS (probably a little early here) based on some similar thinking.

Cheers,

-bill