It was right when 24/7 launched, on the day that Lululemon Athletica (NASDAQ:LULU) had reported, it was when it was in this symmetrical triangle and I was trying to be really crafty [by saying], “I’m going to give really specific instructions. I’m going to say, if it breaks this level you want to short, but if it doesn’t break this level don’t short and if it does break this level, it will go to this target.”
Long story short, it just stayed in this pattern to where it was three weeks later that it finally broke south out of this symmetrical triangle, and then I was waiting for it to do a backtest of the pattern, because I talked about how once it breaks to the south the best way to trade it is to actually short a back test, and of course by waiting — weeks have gone by — anyone who watched that original update is probably wondering, “OK, what are we going to do with LULU now? You said, ‘Short if it goes down or short the break or the back test and its broken to the south but hasn’t done a back test, and it’s basically the same price as it was per the [original] instructions.
In this particular case, I would just go ahead and scratch out the trade. Not everything’s going to be a winner. Because now that it broke out of this large symmetrical triangle, I honestly don’t know if it’s going to go back up to the apex over here or if it’s some sort of bear flag and it’s going to continue down. One way to do it is like this: You take yesterday’s trading day, if it breaks to the south, let it ride. If it breaks to the north and takes out the high of the day, then go ahead and scratch out of the trade most likely at breakeven.
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