CupWatch Products

How To Trade the Cup With Handle Family of Trades

Frequently Asked Questions (FAQ)

Q. What do the letters and the number with a percent sign (%) mean in the Subject Line of the CupAlerts?

A. This information is provided in the Subject Line so you can tell if it is a stock that you may want to consider before you open it. A sample CupAlert Subject Line would read as follows:

Subject: CupAlert for     MSFT   Y   PDY     136%

MSFT is the Stock Symbol

Y means “Yes Options are available for this stock.”  Left blank if options are not available..

PDY stands for the type of alert - Premium Daily

136% - is the Percentage of the 50 Day Average Volume at the time of the Alert.

We have 10 different CupAlerts that you can select to receive. Six are for Bullish Markets and four are for Bearish Markets.

        BULLISH ALERTS

PDY Premium Daily
SDY Standard Daily
NDY Non-Standard Daily
SWK Standard Weekly
RID Reversed Inverted Daily
RIW Reversed Inverted Weekly

        BEARISH ALERTS

IDY Daily Inverted
IWK Weekly Inverted
RDY Reversed Daily
RWK Reversed Weekly

Remember you can change the CupAlerts you receive by clicking on the Customer Login on the menu and, after logging in, click on Alerts Setup and place a check by the Alerts you wish to receive.

The last set of figures in the Subject Line is the Percentage of the 50 Day Average Volume at the time of the Alert. This is calculated REAL TIME at the moment the Alert is triggered. This percentage is given for stocks using DAILY data only and not for those using WEEKLY data.

Q. Can you give us a copy of your track record?

A. We do not tell our subscribers when to buy or sell. Our only business is to tell our clients when a stock has formed a Cup with Handle formation. We are very good at doing that. We do not ask our clients when or if they buy or sell. Each of them will use the information we provide differently as one will not trade the same as another. That is what trading is all about. You must have a system and then stick to it. It takes time and trial and error to develop your trading style. I suggest you start by reading as much as you can about this exciting business (Recommended Reading at right). If you study the material provided in these books and learn to follow the guidelines and rules laid out by these very knowledgeable experts you will have made a very good decision. Once you have done that we will tell you where the stocks are that form the Cup with Handle formation. This is the best technical indicator to tell when a stock is breaking out of a consolidation.

Q. When I am at the email announcing that the new CupWatch Report is available, I try to click on the bottom line thats say 'http://.. ' and nothing happens. What gives?

A. Not every email package works the same. Some, such as those built into Netscape or Internet Explorer will automatically display as links those items that appear to be links. Other email packages, such as what comes with AOL display everything as text.

If you can't click on the url at the bottom of the email (example: 'http://www.cupwatch.com/Report/123') then you have 2 choices.

One is to bring up your browser and type the url in exactly as shown. Case is significant. You must do it exactly.

The other choice is going to sound like a lot of work, but after you try it a couple of times, you'll find it is really easy. While looking at the email that you are having problems with:

  1. Move your mouse cursor to the far left of the line that contains the url.
  2. Click and hold down on the left button, don't let it up. Move the mouse to the right so that as you are moving it, you see the line start to be highlighted as you are moving.
  3. When you have highlighted the whole text area, release the left mouse button.
  4. Most windows based programs will have an area at the top of the window marked 'File Edit ...'. Click on 'Edit' and a drop down menu will appear. In the drop down menu, click on 'Copy'. The highlighted text will be placed into an internal area of memory called a clipboard.
  5. Bring up your browser.
  6. Click in the area that you would normally type in a url. This makes it an active typing area.
  7. Click on 'Edit' at the top of the browser's window. You should see the option 'Paste' is active. Click on 'Paste'. This should take what is in the internal clipboard and place a copy of it where the active data entry area is. This is why the step just above is important.
  8. Press your Enter key on the keyboard. The report should now be loaded.

Q. I cannot always find the symbols you give us in a Breakout Report in a previous report. How can I easily find the report?

A. If it was in a report the easiest way to find the date of the report is to look at the bar that made up the Right Side of the Cup (we give you this date) and count that bar plus three more and that bar date will be the date we reported it. The only time that would not be true is for stocks we report on Monday. We update the Industry Groups every weekend so if a stock with a recent Cup with Handle was moved up with its group we would report that to you for the first time on the following Monday.

Q. Recently I have notice there is a lot of stocks breaking out with a handle that is only 5 - 7 days long. Should we consider them as a good breakout?

A. This happens at the end of a prolonged Bear Market.   The purpose of the handle is to "shakeout the weak and timid" investors that remain in the stock. At the end of a Bear Market there are no weak and timid investors left in the market anywhere. Therefore there is little resistance when the handle begins to form so it moves up quickly on some stocks.

Q. What do group one symbols and group two symbols mean?

A. Group 1 stocks are those stocks in the top 25% of the Industry Groups or the first 50. Group 2 are those stocks in the second 25%. We update the Groups after the markets close on Friday.

Q. Why is it that not all stocks listed in the Breakout Stocks in the CupWatch Report were reported, in the CupWatch Report, at the time they formed the Cup with Handle?

A. Each Friday after market close we update the Industry Groups in Group 1 and Group 2.  This is the top 50% of the Industry Groups.  This means that each Monday the stocks that are included will be changed from week to week.  Therefore a stock could appear in the Breakout Report that was not reported in the CupWatch Report at the time the Cup with Handle formation was formed

Q. What is the relationship between the Daily, Weekly and Monthly CupWatch Report?

A. The different reports are all separate entities. The Cup with Handle formation can be used on any daily, weekly, or monthly data chart. The location of the bars and their relation to each other along with the volume action determines the Cup with Handle formation. Each bar on a daily chart represents one day, weekly chart one week, and the monthly chart one month. Consquently it may take two to three months for a Cup with Handle to form on a Daily chart where it may and usually does take a couple of years to form one on a weekly chart.. You can trade the Weekly and Monthly charts exactly the same as the Daily charts. You just have to keep the time frame in perspective.

Testimonials

Richard Pinto – Milford, CT
I've been investing for about thirty years. About 15 years ago I discovered an investment publication and found it to be a quick informative read. More importantly; however, I discovered the core methodology behind the investment strategies it professes. I quickly subscribed to a chart service. ...

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