Market Report: Black Sheep Trader - The Skinny on Fat Profit Potential

It’s not a surprise that Black Sheep Trader has had such success. Seventy-seven percent accuracy with 1,969% cumulative gains over the last three months is thanks in large part to the technical genius of Stephen Oakes. In fact, we’re confident that we’ll duplicate our beta test results, and easily produce our promised “12 triple digit winners over 12 months.”

Here’s a taste of what’s to come from Black Sheep Trader.

Take a look at Weight Watchers (WTW). After all, there’s no shortage of customers. Two-thirds of Americans over overweight, with some 60 million people categorized as obese. And at any given time, more than 35% of Americans are on some form of diet.

Technically, says Stephen, Weight Watchers had been steadily bumping up against resistance near $55, marked by the horizontal line drawn near the top of the chart. However, instead of trading in a channel where the floor line remains horizontal, this time around the floor is rising, meaning that every time the sellers and profit takers step in, new buyers are flooding the markets – forcing the stock up.

This particular setup in the technical analysis world is known as a “rising wedge.” You cannot trade inside the wedge. Instead, wise investors wait until the stock either breaks the lower trendline or finally pushes past resistance toward new heights before taking action.

This morning we have a breakthrough to the upside. As I write, the stock is trading at $55.32, just above major support. I say support because as a stock surges past resistance, that resistance line now becomes support. It’s a flip-flop depending on where the stock is trading. Remember: If the stock trades below the trendline, we’d call it resistance. On the other hand, if the line sits below the stock’s price, we’d refer to it as support.

A savvy investor such as you probably already knows this, so let’s get right into the meat and potatoes of my technical argument here.

Below the price chart you’ll notice the MACD and DMI indicators. I realize the bottom indicator says “ADX” but this just refers to the third black line, which weaves in an out of the DMI+ (green) and DMI- (red). You can ignore this ADX (black) line. It is of no use to us.

Speaking of DMI, I drew a black circle where the first buy signal was given, which occurred sometime in mid July. Additionally, the MACD recently gave us a buy signal in the month of September. With our parameters needing both to agree, our timing here is impeccable.

Let’s lock ‘n load. Our recommendation: Buy shares of WTW at or near $55.32. Place a 5% stop loss at $52.55.