Jeff Cooper 7Set Up

Jeff Cooper- 7 Set-ups That Consistently Make Money

1

Seven Set-upsThat

MAKE MONEY


2

SYMMETRY, THREES & SEVENS

I


3

INDEX-SPX.X-W S&P 500


4

Jan 2000 through October 2002

A) All-Time high

B) 3-Drives to a low at 50% of high (October 02 was 769)

The low played out in Three’s as well:

A test-of-a-test into March ’03!


5

INDEX-SPX.X-W S&P 500


6

S&P 500 Weekly

August 1999 through December 2000

A) Weekly 1-2-3 Snapback Swing-to-a-Test (1-2-3

or 1-2-3-4- Sometimes there are four

Swings instead of three).


7

January 95 through February 07

A) 1-2-3 Swing to 50% of high

INDEX-SPX.X-M S&P 500


8

INDEX-SPX.X-M S&P 500


9

From the October 02 low (A) the S&P was up 390 points in 15 months prior to a 1st Pullback of 6 months to 1060 S&P in August 2004 (B).

From there a measured move up of another 390 points equates to 1450 in 30 months or Feb 2007 (C).

(D) 7th Month up 7 years from high (E) Test-of-a-Test Pattern 3 Swings at September 2000 Pivot 3 Swings at March 2003 Pivot


10

NYSE-GS-W GOLDMAN SACHS


11

06 through 07

Note how momentum identifies Kick-Off Move

A) 1-2-3 Weekly Swing Pullback

B) N/R7 Week prior to explosion (C)


12

NYSE-GS-D GOLDMAN SACHS


13

August 06 through February 07

Note- The Range of the low before breakout is 146-147 and the 50% Rule is 220/221.

A) Gap up over 50 DMA identifies Kick-off Move

B) Gap down below 50 DMA

C) 1st Sell / Train Tracks

D) 1-2-3 Swing Snapback test of prior Sell Signal


14



15

Jan 07 through February 07

A) 50 DMA is lost after gap coinciding with Rule of 4 Sell Signal


16

NASDAQ-AAPL-W Apple Computer- Inc


17

A) Thrust

B) 1st Weekly Pullback

C) Train Tracks Top

D) 1-2-3 Weekly Swing Pullback


18

BNYSE-EEM-D Ishare Msci merging Markets


19

August 06 through March 07

A) The Key to a 1-2-3 Swing-to-a-Test Sell Pattern is a prior Overbalance

B) 1-2-3 Swing-to-a-Test of prior high


20

NYSE-PCU-D SOUTHERN COPPER CORP


21

From November 06 through

March 5, 2007

A) 1-2-3 Runaway Pullback =

Mid-point of move - 1st Pullbacks

B) Symmetry/ Measured Moves


22

NYSE-RTI-D RTI INTL METALS INC


23


A) 1-2-3 Swing Pullback to 50 DMA

B) Spirit of a 1-2-3 Pullback to 50 DMA is Handle of Cup & Handle Pattern


24

NYSE-RTI-D RTI INTL METALS INC


25

12-14-06 thru 2-1-06

A) In the Spirit of a 1-2-3 Pullback coincides with a Handle of a Cup & Handle Pattern and a Necktie of 20/50 DMA’s

B) Note 3-Bar Surge


26January 31, 2007

NYSE-RTI-10 RTI INTL METALS INC


27

NASDAQ-WYNN-W Wynn Resorts


28

Note 7th Bar Pivot on weekly on week ending 2-9-07

A) Accelerated Momentum on Weekly

B) Continuation of momentum subsequent week –The natural expectation is for momentum to beget momentum – always look at multiple time frames!


29



30

August 06 through March 8, 2007

Note momentum gap on September 12th / Angular Rule of 4 Breakout o January 10th after test of 50 DMA


31

NASDAQ-CROX-W Crocs


32

A) Note 3-Week Surge after Outside up week

B) Note the 7th week Pivot week ending 1-12-07 when Tail week (B) is off-set


33

NASDAQ-GROW-D U.S. Global Investors


34

December 18 through February 7, 2007

Snapshot of high from Prior chart

A) Soup/Test Failure on 12-29

B) N/R7 on January 16, 2007

C) 7th Day Pivot on January 17, 2007


35

NYSE-BSC-D BEAR STEARNS


36

A) 1-2-3 Swing-to-a-Test of 50 DMA

B) 7-Day Pivot

C) 7-Day Pivot on 2-22 (not shown on this chart)



37A) Gap on 7th DayB) 1-2-3 Swing-to-a-Test Gap

NYSE-BSC-10 BEAR STEARNS


38

NASDAQ-WYNN-W Wynn Resorts


39

A)Note the 1-2-3 Swing Pullback to 50 Week Moving Average on week ending July 28, 2006

B) Weekly Rule of 4 Breakout

Accelerated Momentum suggests substantial follow-through

October 06 through February 07


40

NASDAQ-ACLI-D American Commercial Lines


41

A) 1-2-3 Drives to a High

B) 1-2-3 Snapback –to-a-Test

C) Note how ACLI regained 50 DMA at close


42

THE NATURE OF PRICE BEHAVIOREXPANSION/CONTRACTION

FALSE MOVES LEAD TO FAST MOVES

II


43

NASDAQ-WYNN-D Wynn Resorts


44

A) Nesting or Necktie of 20/50 DMA

B) Gap up on 11/06 suggests kick-off move and an Expansion of price after 1 month Contraction

C) Note 1st turndown after Thrust

D) 1-2-3 Swing Pullback to 20 DMA – note gap.

Sept 06 through December 06


45

NYSE-MA-D MASTERCARD


46

A) Contraction or Volatility

B) Breakout which “Tails Off” leading to a 10%, 10 point decline over ensuing days (C).

10-31 thru 12-19-06


47December 12, 2006Volatility Pendulum

NYSE-MA-10 MASTERCARD


48



49

Train Tracks on 10-minute/ Note how the Reversal on 11/27 occurred after a “Bullish Outside Day up on 11/24”.

November 26-27, 2006


50

NYSE-CXW-D CORR CP OF AM


51

A)Expansion Breakdown but note there was no follow-through for 3 days.

B) Note acceleration as CXW Recaptures 50 DMA which coincides with Rule of 4 Breakout and move through Top of Triangle.

October 06 through Feb 20, 2007


52January 31 through February 1, 2007

NASDAQ-GOOG-10 Google


53

NASDAQ-AAPL-D Apple


54

Reversal after decline from $93 in December7th Bar Pivot after Contraction

End of December 06 through February 21, 2007


55

NYSE-VOL-D VOLT INFO SCI


56

A)Rule of 4 Breakdown but no follow-through –Follow-through is key!

B) Volatility Pendulum is triggered

C) First Pullback to 20 DMA

D) 7th Bar Pivot

E) Note climax played out in 3 bars

From November 06 to January 07


57

NYSE-VOL-10 VOLT INFO SCI


58

A) Momentum gap on January 9th

B) 1st Pullback after Thrust

C) Symmetry 43 to 38.50 = 4.5038.50 – 4.50 = 34

Friday’s/ Trend Days are accentuated

January 9 – 12, 2007


59

NYSE-GLD-D STREETTRACKS GOLD


60

A)Large Range Extension through Trendline (Hang Man’s Noose) stops at 20 DMA

B) GLD explodes when break is offset

Note move back below (A) on 2-27 leads to Breakaway Gap

December 06 through March 5, 2007


612-21-07

At 66.10 GLD offsets (A) from prior chart

NYSE-GLD-10 STREETTRACKS GOLD


62

2-21-07Here’s an ORB on AEM, a gold stock, on

same day GLD reverses.

NYSE-AEM-10 Agnico Eagle Mines


63

NASDAQ-NTRI-D NutriSystem


64

A) Angular Rule of 4 Breakdown at 50 DMA

B) N/R7 Contraction/ Note subsequent Expansion of Range and Direction

C) Failure at 200 DMA on closing basis

September 06 thru January 07


65

VOLATILITY PENDULUM EARNINGS REVERSALS

III


66

NYSE-BSC-D BEAR STEARNS COS THE


67

A) Triangle Pendulum

B) Reverse Triangle Pendulum sets up with LROD prior day on 2/22 which is a 7th Day Pivot



68

NYSE-MA-D MASTERCARD


69

Note how earnings Reversal occurred on 3rd Drive up. Note “Gap & Fill” Pattern (A) gave a line drive to 50 DMA (B)

1-2-07 thru current


70February 9, 2007



71

NYSE-TNH-D TERRA NITR CO COM UT


72

Bubble Oops is triggered as TNH gaps up on 3rd Large Range Extension (A) and trades back through prior days high (B).

Note how the Oops occurred from a Parabolic Rise and a 100% plus advance.

Note Bungee off 50 DMA on 2-27

September 06 through March 6, 2007


73



74

Gap up after Runaway Move sets up as stock takes out prior days high and stays red.

Note the Symmetry of 50% Rule as the set-up occurs 50% up from low at (B)

November 06 through March 07


752-26-07

NYSE-PCU-10 SOUTHERN COPPER


76

NASDAQ-LDSH-D Ladish Co.


77

A) Reversal

B) Reversal is off-set

C) 1st Pullback after Thrust is an N/R7 – 1-2-3 Pullback

Note subsequent Explosion (D)

Dec 06 through Feb 1, 2007


7810-minute of January 31st Explosion with first hour high

NASDAQ-LDSH-D Ladish Co.


79

NASDAQ-GROW-D U.S. Global Investors


80

A, B & C) All show Reversals that are offset.

Note how momentum accelerates as the prior Tails are negated.

The Reversal at (D) is an Outside Down Gilligan –after the “Charlie’s Angels” or 3 Prior Tails.

Note the Cup & Handle with the 1-2-3 Pullbackand Undercut of 50 DMA at Handle.

August 06 through February 7, 2007


81

INDEX-INDU-M DOW JONES INDUSTRIAL AVERAGE


82

A) August ’97 Outside Down Month gives 1-2-3 Bar PullbackB) July ’98 Monthly TailC) May ‘99D) August ‘99E) * Large Range Outside Down Month

January 96 through October 02


83

FIRST TURNDOWNSFIRST PULLBACKS

IV


84

November 06 through February 2, 2007A) 1st Pullback after thrust us a test of 50 DMA

NASDAQ-SUNW-D Sun Microsystems


85

NYSE-GMR-D GENERAL MARITIME


86

A) Recapture of 50/200 DMA

B) 1-2-3 Runaway Pullback is 1st Pullback after Thrust

January 07 thru March 07


87

NASDAQ-VSNT-D Versant Corporation


88

Keying off Moving Averages/ * 1-2-3 Pullback on February 9th.

A) Breakout

B) 1st Pullback

From November 06 through February 14, 2007


89

January 2, 2007 through March 8, 2007A) Bungee off the 50 DMA back up to the 20 DMA (B)

NYSE-CRS-D CARPENTER TECH


90

2-21-07ORB’s at new highs after Signal Bars identify solid trend days.

NYSE-CRS-10 CARPENTER TECH


91

NYSE-VMC-D VULCAN MATERIALS


92

November 06 through February 07

A) 1st Test of 50 DMA in 60 Days

B) Rule of 4

C) 1-2-3 Runaway Pullback


93

NYSE-VMC-10 VULCAN MATERIALS


94

A) 1st Pullback is a 1-2-3 Pullback on 10-minute chart.

B) 1st 10-minute bar below a prior 10-minute bar in accelerated momentum is a place to take profits.

2-21-07


95

NASDAQ-FMCN-D Focus Media Holding


96

A)Many times Breakouts Snapback quickly and Stutter Step before following-through Note how the seemingly bearish Outside Down day at (A) is offset by a gap suggesting continuation.

B) 1st Pullback after follow-through is in the spirit of a 1-2-3 Pullback

Oct 18th thru Nov 29, 2006


97

NYSE-PCU-D SOUTHERN COPPER CORP3


98

A) 1-2-3 Pullback after regaining 50 & 200 DMA

B) Reversal (Gilligan)

C) Reversal Reversed leads to Accelerated Momentum

Jan 03 through March 5, 2007


99

NYSE-LVS-D LAS VEGAS SANDS CORP


100

A) Breakout Recapturing 20 DMA

B) Tail/ Looks like failure

C) Note 1st Turndown on very next day January 10th –when stocks do what is NOT EXPECTED

November 06 through December 1, 06


101

NYSE-LVS-10 LAS VEGAS SANDS CORP


102

How to identify fast moves –

A) ORB suggests Trend Day higher

B) At 97.30 a Reversal New High Method is triggered

January 10, 2007


103

NASDAQ-FMCN-D Focus Media Holding


104

A) Rule of 4 Breakout at 50/200 DMA

B) Snapback appears to be failure as it is an Outside Day Down but is followed by gap up – these momentum gaps above resistance are often kick-off moves.

C) 1-2-3 Pullback Swing/ First Pullback 1-2-3 Runaway Pullback

Aug 06 thru Jan 07


105

NASDAQ-FMCN-10 Focus Media Holding


106

Many times stocks walk before they run. This is day 2 after a 1-2-3 Pullback set-up.

A) “Spirit” of a 1-2-3 Pullback

January 24, 2007


107

A) Bubble Oops without follow-through (B)Note how (A) is a “First Sell”

NYSE-TSL-D TRINA SOLAR LTD


108



109

A) Momentum Gap (Gaps after price contractions)

B) 1st Daily Turndown

C) Holy Grail/ 1st Pullback

D) Undercut of 20 DMA

End of September 06 through February 07


110

KEYING OFF MOVING AVERAGESTHE HOLY GRAIL

THE MANTRA AT THE 50 DMA

V


111February 20 through current



1122-27-07

NYSE-GS-10 GOLDMAN SACHS


113

NASDAQ-EQIX-D Equinix


114

A) Flush at the 50 DMA – note long “Tail”

B) Undercut at 50 DMA – note N/R7 Following Day



115February 13/14, 2007

NASDAQ-EQIX-10 Equinix


116

NYSE-GS-W GOLDMAN SACHS


117

A)Note the 1-2-3 Pullback to 50-Week Moving Average on week ending July 14, 2006

B) N/R7 week on week ending September 8 –Contraction/ Expansion

C) N/R7 week precedes Explosion (D)



118

NYSE-GEF-D GREIF INC CL


119

A) Tail at 200 DMA

B) 1-2-3 Runaway at 20 DMA

C) Holy Grail

D) Tail at 50 DMA

Aug 06 through Feb 07


120

NASDAQ-DECK-D Deckers Outdoor


121

A) Tail at the 50 DMA is a successful test of (B)C ) Angular Rule of 4 on a gap

End of September 06 through February 7, 2007


122Dec 1, 06 through February 5, 2007

NASDAQ-DECK-D Deckers Outdoor


123

DECK triggers Angular Rule of 4 Breakout on gap open.Note Expansion in 1st hour and Contraction for rest of session

NYSE-FMD-D NASDAQ-DECK-10 Deckers Outdoor


124

NYSE-FMD-D FIRST MARBLEHEAD


125

A) Flush Out at the 50 DMA

B) Expansion Pivot “Carryover” trade

October 06 through February 14, 2007


126February 12/13th

NYSE-FMD-10 FIRST MARBLEHEAD


127



128

A) Test at 200 DMA

B) Test of 50 DMA

C) 1st Pullback to 20 DMA / Holy Grail

D) First 1-2-3 Snapback Sell after loss of 50 DMA

E) First 1-2-3 Pullback after recapture of 50 DMA

Sept 06 through Feb 2, 2007


129

NYSE-CMI-D Cummins


130

A) Recapture of 50 DMA

B) 1st turndown

C) 2nd Mouse Gets the Cheese

D) First 1-2-3 Pullback



131

Note the acceleration when the 20 DMA at 108.65 is broken and the prior weeks low at 107.05 is broken (B).



132

NYSE-ICE-D INTERCNTNTL EXCHANGE


133

A)Note on January 3rd the Expansion Breakout/ Angular Rule of 4 Breakout

B) On January 23rd a 180/ Holy Grail/ Outside Day up /7th Bar Pivot

C) 1-2-3 Pullback/ 180 /Mini Cup & Handle at 20 DMA

Note how the Reversal at (B) occurs at high of (A).

From December 06 through February 9, 2007


134

End of September 06 through February 07Nesting on Necktie of 50/20 DMA’s

NASDAQ-CROX-D Crocs


135January 26 through February 14, 2007

NASDAQ-ITRI-D Itron- Inc


136Jan 7 through February 14, 2007

ACLI recaptures 50 DMA on close and advanced to new high.

NASDAQ-ACLI-D American Commercial Lines


137

PEEKABOO CLOSING HIGHS

VI


138

NYSE-FMX-D FOMENTO ECONOMICO ME


139

A) Peek-a-Boo Closing High January 31st

B) 1-2-3 Pullback on February 12th

C) Note failure below prior Pullback Pivot on February 23rd and failure of 20 DMA on February 23rd

Note – The market has a memory of Prior Pivot Points



140February 1, 2007

NYSE-FMX-10 FOMENTO ECONOMICO ME


141

CARRY OVER SETUPS

VII


142

NYSE-GHL-D GREENHILL & CO


143

A) Signal Bar

B) Signal Bar Reversed – Note this occurs below 50 DMA and is a good carryover candidate as it is also a Rule of 4 Sell Signal.

November 06 through February 07


144

NYSE-TEX-D TEREX CP


145

A) Island Top Pattern

B) (A) is a Fractal of the December Island Top (B)

C) LROD after possible climax run on 2-26 –Follow-through is key / Gap from 2-27 underscores follow-through.

November 06 through March 07


146

NYSE-LVS-D LAS VEGAS SANDS CORP


147

A) “Carryover” from 2-26 / Note how daily chart turned up on morning of 2-26 and died



148

PUTTING THE PIECES TOGETHER

VIII


149

NYSE-PCU-D SOUTHERN COPPER


150

A) 1-2-3 Runaway Pullback

B) In the Spirit of a 1-2-3 Runaway

C) Flush out at 50 DMA

D) 50 DMA is recaptured – note –Spirit of a 1-2-3 Pullback to 50 DMA (E)

End of October 06 through February 07


151

NASDAQ-EQIX-D Equinix


152

A) Undercut of 50 DMA

B) N/R7 Pause after the Reversal at (A)

C) Explosion

D) Holy Grail

E) 1-2-3 Pullback follows through after a stutter-step

F) When stocks don’t do the expected: looks like a failure gets up expectation for Pullback – but EQIX exploded.

From December 06 through January 2007


153January 30th

Note high for day is 7th bar for a first hour high

NASDAQ-EQIX-10 Equinix- Inc


154

NYSE-BEC-D BECKMAN COULTER


155

A) Angular Rule 4 Breakout which looks like a failure

B) Undercut of 50 DMA without follow-through

C) 50 DMA is regained on an Expansion Pivot Buy Signal which offsets Signal Day at (A).

November 06 through February 9, 2007


156February 8, 2007

NYSE-BEC-10 BECKMAN COULTER INC


157

NASDAQ-ITRI-D Itron- Inc


158

A)Expansion Pivot: Largest Range in 10 days below 50 DMA, leads to momentum (good Carryover Set-up)

B) Expansion Pivot back up through 50 DMA

C) Handle of Cup & Handle at 200 DMA indicatesBreakout (D) will seee continuation.

July 06 through Feb 2, 2007


159

NASDAQ-ITRI-10 Itron- Inc


160

A) The Breakout on January 31st was a good “carryover” set-up based on the Cup & Handle Pattern at 200 DMA on daily.

January 31 through February 1, 2007


161

NYSE-ANF-D ABERCROMBIE & FITCH


162

A)Momentum Gap through Key Moving Averages many times identifies Kick-Off Move

B) 1st Pullback of 6 days note 7th day turns up daily trendline

C) Riding the 20 DMA

D) 50 DMA Bungee

E) 1-2-3 Pullback to 20 DMA in a month - 4 day is LROD

F) Upside Earnings Reversal Gap and Fill Intra-Day



163

NYSE-ANF-10 ABERCROMBIE & FITCH


164

A)Low of February 7th was 79.92 (A) – ANF gapped down on February 8th but filled the gap and squeezed higher

B) Note how 1st Pullback led to a quick spike higher

Feb 8, 2007


165

NYSE-BXP-D BOSTON PPTYS


166

A)1st tag of 50 DMA in a while (time not shown) and acceleration

B) Undercut without follow-through

C) 50 DMA regained convincingly with Large Range Day

D) Lizard Sell Signal without follow-through occurs at mid-point of run

E) Expansion Range Double Sticks of Train Tracks after Runaway Move marks climax high. 115 was hit at the end of the month.


167

February 9, 2007Trend Day down on February 9th after Sell Signal on February 8th.

NYSE-BXP-10 BOSTON PPTYS


168

NYSE-FMD-D FIRST MARBLEHEAD


169

A)Expansion Pivot also breaks Neck of Head & Shoulders Pattern

B) This coincides with the Rule of 4 Breakdown

End of August 06 through March 07


1702-13-07

NYSE-FMD-10 FIRST MARBLEHEAD

Jeff Cooper 7Set Up

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