[pic]                       1.  BMY pulls back  to  its  200  Day  EMA  which  isrising.  It is acting much better than the other drugs  such  as  MRK,  PFE,WLA and the sector index DRG, all of which  have  traded  below  and  closedunder their 200-day EMA's.  BMY has much  better  relative  strength  versusthe group.                       You draw the swing point trend line connecting  a  S3point to a S2 point.  You draw these  TL's  from  point  to  point,  and  itdoesn't matter if it intersects any other bar.   This line puts me in  alertto watch for a change in direction on increased volume.   I am  looking  forcloses above the midpoint and top of range.  The odds are  strong  that  theinstitutions will return to the drugs because valuations have come  back  tobetter levels.                       2.  BMY makes a  significant  move  above  the  trendline on BP 1 pattern which is the strongest indication and it does  this  ongood volume.  It closes above the previous 11 highs  which  certainly  tellsyou we are looking at  a  directional  change.   Your  trading  plan  shouldinclude a planned entry 1/8 above the 2 BARS high for the next day.                       3.  Good entry at 68 7/8 and stock runs to a high  of69 3/4.  It is usually the case that you will get a continuation move  afterBP 1, market conditions permitting (rally mode).                       4.  This is a 5 bar pullback that closes in  the  topof the range.  The move from the low of 64 at 1 to 69 3/4 was 5 3/4  points. The retracement to 66 5/8 at 4 is a  54%  retracement.   The  entire  worldwill be entering above S3 at 69  3/4  which  is  a  completion  of  a  1-2-3breakout from a significant low (Some call it an  A-B-C  Chart)   To  me  itjust means the Generals are taking it higher and you want to be  there  withthem for the ride.  The action at 4 with a close in the top of  range  aftera 5 bar pull back and after the BP 1 breakout of a swing point TL  sends  meright to my trading plan  for  the  next  day.   Buy  1/8  above  4's  high.Remember you are always looking  for  the  earliest  entry  that  has  soundreason.                       5.  Good entry and excellent move.  68 1/8 entry  andstock traded to a high of 70 3/4 on the day.  Relative to BMY's range,  thisis good action.   (See BMY chart)
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                       BMY formed an intra day Slim  Jim  right  at  the  68high (A) of 4 bar.   (see chart 1)  You had a planned entry  off  the  dailychart confirmed by a Slim Jim with  rising  lows  on  the  5  minute  chart.Signal is go.  Bar 6 was a BP as all the action was above  Bar  5.  Pigs  atthe trough.  When they want them they  come  in  with  the  herd  mentality.Recognize it and go with it.  Bar 6 was a gap day but you got  another  SlimJim at R which broke out as the S&P 500  mounted  a  3:00  PM  charge.   BMYformed an intra day Slim Jim right at the 68 high of 4 Bar.
                       Slim Jim Reversal
                       These consolidations can take the form of  horizontaltrading ranges, slim triangles or wedges with rising lows. They can be  veryexplosive breaking out to new intra day highs and  lows.  By  trading  thesepatterns on high RS value strong ADX stocks you capitalize on  the  momentumcaused by Institutions, program traders and any  of  the  accelerators  thatare involved (sells reversed). The higher priced stocks >50  give  the  besttrades unless it has unusual volatility.
                       Key Point
                       When you see a Slim Jim in  the  last  two  hours  oftrading, be ready to act. Institutions, when  they  are  buying  futures  atfair value to put money to work, will have to run in and buy the  underlyingstock late in the day because they were not able to buy  enough  futures  atfair value. This is why you see some explosive moves late in the  day.  Thisalways occurs during an up day as institutions must give up price to get  inthe market that day. Specialists won’t short size to the buyer late  in  theday unless it is at an expanded price. These explosions will be in  the  S&P500 program stocks.                       The Slim Jim  patterns  take  on  added  significanceused in conjunction with  higher  time  frame  charts.  Also,  when  today’spatterns breaks out and it is also above a Slim Jim from the prior  day,  itcan be explosive.                       Remember, the longer and tighter  the  consolidation,the better the move. The dynamics must be clear for you to enter the trade.