The Stock Market is in a continuously changing state.    To aid our understanding when there are more people who want to purchase the prices tend to move upward, known as a Bull Market.    Conversely, when there are more who want to sell, prices tend to move downward, known as the Bear Market.   Kind of Economics 101, The Law of Supply and Demand.

Between those states are the Transitions; the Up Transition (from Bear to Bull) and the Down Transition (from Bull to Bear).   It’s almost like the seasons of the year; Summer- Bull, Winter – Bear and the transitions Spring (up transition), Fall (down transition).  

At CupWatch we have developed “The CupTrade Strategies” which essentially breaks the seasons into two groups.   “Bullish” which includes the Bull and UP Transition Strategies and the “Bearish” which include both the Bear and the Down Transition Strategies.     Using this method if you like to work the positive side or negative of the equation, or both, we have a program just for you. 

Using the Bullish approach we are entering the market using long strategies.   We buy low and sell high.   Our systems are fully automatic but can be easily set to require confirmation before each trade by the client.  They provide traders the flexibility needed for their individual style.   This provides our clients with an impressive set of tools and strategies.   Hence the name “Essential Tools for Stock Traders”.

How Bullish CupTrade Strategies Work

Check the Del Report and select the stocks you wish to trade and determine the number of shares you are buying.  Next it is essential that you determine what season the stock market is in.  Let’s say you have decided we are in a Bull Market.   Using the Bullish CupTrade Strategies you will select from one of the bull market cycle strategies and load it into your Trade Station Software chart of the stocks selected.

You will get an E-Mail CupAlert that serves as a “heads- up” that conditions are ready to make a trade when the price crosses above the Pivot Point Price plus 8 cents.  At this point the automatic buy order is excecuted and you are “in Play”.   Assuming you have loaded “#CupTradeLE” the program will follow the stock as it gains in value. You will be sold out when one of our triggers senses that the stock is reversing directions to a sufficient degree. At all times, you are protected so if this stock were to go against you, your losses would be limited to the stop loss percentage you had selected, normally 7 percent.  In practice the amount of your loss is usually lower.    Maximize your gain, Minimize your losses it’s one of our main goals and is built into every one of our programs.

Those of you experienced in trading the Cup with Handle know it works best in a Bull Market.  The cup with handle is formed as the stock takes a break to catch its breath after a run up of at least 25 to 30 %.   In a strong Bull Market a stock that is in an up trend is hard to stop.  

At some point a stock will trigger an exit.   It is possible that this is just a minor correction and there is a lot of “climb” still left in the stock. At this point, you should load in “#TrendTradeLE” and our system will enter you back in if the stock continues its climb.    This “horse” may buck several times and TrendTrade will sell you out and buy you back in at the appropriate times as the stock continues to climb.     TrendTrade does not require another Cup with Handle Formation to be made.  As an added service we provide a combination Strategy “#CupTrendComboTradLE” that allows you to load one strategy to make the intitial Cup with Handle Trade and follow with up to three Trend Trade entries.   Our experience shows that there is not much chance of future gain past this point.

Check out the graph which shows how the CupWatch and TrendTrade Programs got us in and out at just the right times automatically in a xyz Stock.

Sometimes the movement of a stock can be rather bumpy as it makes its climb.    Our systems follow the stock up, “gathering profit” along the way, while protecting your position.

Strategies Used in the UP Transition

At the end of a Bear Market the number of inverted cup with handles not only increases but the number that fail to break down increases as well.  After years of studying the inverted Cup with Handle their performance makes the Up Transition period one of the best for those of us that like to play the long side. Some traders find it confusing that even though these trades are associated with the Inverted Cup with Handle formation they are still all Bullish Trades!

The #IHandleTradeLE, the #IBounceOffTradeLE, and the #RversedICWHTradLE are the strategies we have developed to make trades during the Up Transition phase.  When you receive the Inverted Cup with Handle setups in the DEL Report they will be in the fourth day in the handle.  Many of these will already have shown they want to go up by the time they show up.   If they do you should load the #IHandleTradeLE into their chart.  The next day or two they should enter a position and you should stay with the trade until it shows signs of moving sideways or down. The Majority will go up 10 -25% above the Pivot Point before they start to level off at the top of the handle.  If they are going to continue going up they won’t slow down for long. We love it when it does that!

The above chart shows how powerful the #IHandleTradeLE can be.  Note how after making the exit for the Inverted Cup with Handle, “Handle Play”, TrendTrade made a re-entry and from there it went into orbit.

When CupWatch licenses you for using one of our CupTrade Strategies Programs it comes with complete documentation.   When you first start using the strategies in Trade Station we recommend you do not activate the trades for live trading.  This allows you to (paper trade) until you feel comfortable with the program.   You can of course give our help line a call or E-mail us any specific questions or challenges you may be having.

Bear Market & Down Transitions

Our Bearish Strategies work just the opposite of the Bullish Strategies so it would serve little purpose to engage in a lengthy discussion in this forum.

As you are probably figuring out the CupTrade Strategies Programs are very versatile and are designed to work with the large number of varied formations found in the market. 

The Bearish Trading Systems utilize the Inverted Cup with Handle Formations as the basis of their operation.   Stop loss limits (usually 7%, but you can adjust to your own preferences) kick in if the stock goes against you.  The exit percentage travel down the price range and the stock drops in price.   And similar to our Bullish Trading systems the program will exit you when the trend has reached its lower limit and shows signs of making a correction in the opposite direction.

Whether you prefer Bullish or Bearish or a combination of the two we have a program for you.

  “Essential Tools for Stock Traders”