A volatility squeeze from BELOW the 50-day moving average? Who ever heard of sucfh a thing! Her..
Discussed in this article: CBOE Holdings Inc. ( $CBOE )
I want to look at CBOE Holdings ( NASDAQ:CBOE ). This is a pretty interesting pattern; they also tend to be pretty profitable patterns. We’ve got a volatility squeeze that actually occurred below the 50-day moving average with an upside breakout.
Typically you’ll get squeezes like this, where the squeeze occurs above the 50-day moving average, this was actually a little extended, then you get the break out, and then happy days, this is what happened, love these, this is why I like trading the volatility squeezes. But this one occurred below, after a pretty long period of consolidation, so we can really kind of look at this as really just a very, very prolonged high base, and this is kind of the rocket fuel, this is the start a move higher.
You can look at the other exchanges like ICE, the NYSE, Nasdaq, that type of thing, and they’re moving nicely as well. But as I look at those and then I look at CBOE ( NASDAQ:CBOE ) here, this is the one that really seems to have the most profit potential, because it’s just in a really nice strong kind of an obvious uptrend. I like that, you can see, move lower, consolidating this kind of move, now we’re on the move again.
Now where I would be a little bit more tentative about this would be if the other exchanges were moving lower, not the case, here not the case here, not the case here. So you look at CBOE ( NASDAQ:CBOE ) it’s got a little bit different configuration, but just with respect to an entry point, I think this is a stock that can really be bought right here. The company reports its third-quarter earnings on November 1st, its October 16th now, so for a trade you’ve got a couple weeks to let this puppy run.