Just last month I wrote a blog entitled “Is The Cup with Handle Still Relevant In Today’s Markets?”  For the past 20 months we had not had many Cup with Handle patterns form and I stated my reasons for that being the case. Right after I wrote that article Cup with Handles started showing up in the DEL Report on a regular basis.  Since that time I have reported 27 stocks forming the Cup with Handle and 23 forming Inverted Cup with Handle patterns.  All but one of the 27 Cup with Handle formations have broken out and made good gains.  Sixteen of the Inverted Cup with Handles broke down and fifteen of them immediately reversed back up and broke out triggering the Reversed Inverted Cup with Handle Trade.  Five of the Inverted Cup with Handle patterns just took off to the topside triggering the IHandle Trade and two have triggered the IBounceOff Trade.

Sometimes we have to be patient while waiting for these patterns to form.  Many people just give up only to get back in after there has been another substantial run-up.  I always have potential clients ask how many of these actually work.  As you can see when the market is going in the right direction just about all of them that I report to you are going to work.  I not only scan for the best formations I also check for the best fundamentals.  I have been doing this a long time and have become quite  good at selecting the cream of the crop.  All you have to do is learn what trade to use in each type of market.  For instance if we look at the 23 Inverted Cup with Handle patterns they all failed to perform as a traditional Inverted Cup with Handle would in a Bear Market which it is designed to work in.  By knowing we are in a Bull Market and applying the correct strategy we turn all but one of them into a winner.

Some of you may have noticed I have been including stocks having a Relative Strength lower than what you have been told you need.  My reason for this is that a lot of stocks have been going through a rough time caused by factors that were not of their doing.  They have still been able to make good profits even in a poor environment.  As you can see it has paid off big time.

I differ from what you have been told by others in that I will include stocks below the $12 limit.  If a stock has a high Relative Strength Rating even though its earnings might not be what we would like I will include it in the DEL Report.  My reasoning is that if the Relative Strength is that high the “big boys” know something we don’t and they are picking up cheap shares so why not get in on the action.  The Chart below for Emerson Radio (MSN) will show you what I mean.  Only trade these in a good Bull Market and limit the number of shares you purchase.

If you would like to learn to trade the Cup with Handle Family of Trades we invite you to join our team.  Until you do you will be missing out on all these great trades.  Where else can you get information about stock trades that are 95% successful?  We will teach you how to meet your trading goals.

Dale Glaspie

Those of you that have followed my work over the past several years know that I have written about the importance of being able to determine what kind of market we are in at any given point in time.  When you learn about the four phases of the Cup with Handle Cycle you know which strategy you need to use.  The best way to explain this is to use past market action.

For this exercise I will use the Dow Jones Industrial Index.  After reaching a high of over 14,000, on October 11, 2007, during a powerful Bull Market, it went into a consolidation period through May 2008.  From there it went into a Down Transition Phase which turned into a full blown Bear Market Phase in September 2008.  Because of world circumstances during that period this became a devastating time driving the Dow down to a low of 6,469.95 on March 6, 2009.  At this point it went into a powerful Up Transition Phase where all three Indexes (Dow Jones, Nasdaq, and S&P 500) after breaking down from Inverted Cup with Handle Patterns reversed and crossed back above their Pivot Point TrendLine for large gains.  (See previous blogs for trades made during this Phase). (more…)