Option Pick 3/12/14 with Updates

I am looking to buy PUTS for Ryder Systems (R). Put the April 14 $75 PUTS in your watch list. Watch this stock tomorrow for another down day which will indicate a higher success rate of this stock hitting our target between $68-70 in a couple days or weeks. I came across this stock because it looks like it completed an AB move of a bullish shark harmonic pattern. The AB move is completed if tomorrow is another red day; this means that the BC pattern is forming, this is wherewe get our target. If tomorrow this stock has a bounce and ends up higher than yesterdays high, then this pattern fails. Once the BC move is completed, we will then play the CD move back up 50% of the BC move.  Watch this closely tomorrow! I will buy the put options tomorrow when I see momentum to the downside. Good luck!

*Scroll below for the update*

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*UPDATE* 3/12/14

Here is the updated chart from today’s action. Down below is the 1 Hour chart of Ryder Systems. As you can see, it tested the resistance level today and it held nicely. The six candles in the green rectangle represents 6 hours. Is this good? Yes! 6 hours without breaking the resistance level. This indicates a HIGHER probability of this stock moving down to our target. Tomorrow will tell us what will happen. This stock CAN break the resistance level and move higher. If it does break the resistance level, then this pattern is invalid and we will move on. However, if this goes below the bottom red line at $76.25, then I will be buying several contracts of the April 19 $75 PUTS.  There has been 17 contracts sold today for these options. There has been 0 contracts sold for the rest of the Put options and only 5 sold for the call options. Keep this on watch!

*Scroll below for the update*

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*UPDATE* 3/13/14

Here is the update on today’s action! What a great day for Ryder Systems! This is still a 1 hour chart; each candle represents 1 hour worth of trading. As you can see, today, it broke out of resistance BUT the volume was very weak! This is a false breakout which then led to a nice dump onto our bottom red line! Market Makers use these false breakout techniques to accumulate shares before a sudden rise or a sudden drop. In this case, the market makers did a false breakout to the upside to accumulate shares to short. Now, since the price is  near the bottom of our red line, we need to wait for the price to break down below it before we start buying any put options or short selling this stock. Keep in mind, if it breaks down below, sometimes the chart would want to retest the line before going any further. Today’s action is what I was expecting to see! Get ready to short the stock or buy put options, tomorrow or early next week!

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