WFM Rallies on Cue
by Mike Paulenoff
June 6, 2014 • 8:34 PM EDT
On June 4, Mike added Whole Foods Market (WFM) at 38.30, and exited half two days later at 40.89, looking for 42-44 on the remaining position.
Mike noted in his chart work that the 44% "haircut" in WFM off its October 2013 all-time high at 65.59 to the May 2014 low at 37.05 met his optimal measured target zone off of a multi-month top formation.
He explained, "Positive momentum non-confirmations on my daily and weekly work suggest strongly that WFM has completed a major correction of its prior massive November 2008-October 2013 bull trend. If my work is reasonably accurate, then WFM should be 'in the turn' ahead of a potent recovery rally period that points to the 42-44 initial target zone."
See chart from June 4 below.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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More Top Calls From Mike
Last Wednesday afternoon (Jan 13), with the IWM at 210.76, Mike Paulenoff told MPTrader members:
"The Russell 2000 Small Cap ETF is just about 0.5% off of its all time high. As long as any weakness is contained above 204.30, my near-term pattern set up from the 1/04 pullback low at 190.94 is poised for still higher ATHs above 211.73."
The IWM reached a high of 215 the very next day.
Back on Dec 2, after salesforce.com (CRM) reported strong earnings but price languished, Mike Paulenoff told MPTrader members:
"Weakness in reaction to the news has violated the prior significant near term pivot low at 228.66 (10/30), triggering the Bearish Scenario (Red line) that calls for a deeper correction that projects into the 220 area next, and if violated, to the 205 - 200 target zone.
On the evening of November 30, after Zoom Video Communications (ZM) reported earnings, Mike Paulenoff cautioned MPTrader members about the stock;
"My pattern work argues that ZM started a major correction off of its 10/20 all-time high of 588.54 into the 11/10 low at 366.28. The rally from the 11/10 low at 366.28 to today's high at 487.79 (+33%) to my mind represents an intervening recovery bounce prior to a second bout of weakness that completes the larger corrective process.
During late November into early December, Mike Paulenoff became increasingly concerned about the price behavior of Facebook (FB).
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On Tuesday morning, December 8, with AAPL trading in pre-market action at 124.64, Mike Paulenoff told MPTrader members to watch for more upside:
"AAPL is following a similar, if less exciting post-coil breakout price path than did TSLA one month ago. My attached 4-hour chart shows that since the end of the Sep-Nov coil formation at 112.59 on 11/24, AAPL has stair-stepped to the upside to this AM's pre-open high at 124.96 (+11% so far), in route to a challenge of the 11/09 rally high at 127.
