Brian Shannon TraderTV May, 26 2026

Key Concepts

• Anchored VWAP (Volume Weighted Average Price): A technical analysis tool that calculates the average price of a security weighted by volume, starting from a specific "anchor" point (e.g., a significant low or high).
• Moving Averages (5-day, 20-day, 50-day): Indicators used to smooth out price data to identify trends.
• Stage Analysis: A framework (Stage 1: Accumulation, Stage 2: Uptrend, Stage 3: Distribution, Stage 4: Decline) used to identify the lifecycle of a stock's price movement.
• Short Float: The percentage of a company's shares currently sold short by investors; high short interest can act as a catalyst for "short squeezes."
• Risk Management: The practice of using stop-loss orders and taking partial profits to protect capital.

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Technical Analysis and Trading Strategies

The discussion emphasizes a disciplined, technical approach to trading, particularly for high-momentum stocks.

• VWAP Bounce Strategy: Brian Shannon highlights the "VWAP bounce" as a preferred low-risk entry. When a stock pulls back to the VWAP and shows signs of support, traders can enter with a stop-loss placed just below the recent low.
• Managing Parabolic Moves: For stocks that have moved significantly (e.g., Micron, ARM), the speakers advise against chasing at highs. Instead, they suggest:
  • Trailing Stops: Raising stop-loss levels as the stock climbs to lock in gains.
  • Partial Profit Taking: Selling portions of a position at key resistance levels to reduce exposure.
  • Patience: Waiting for a "flush" (a sharp, temporary decline) below key moving averages before re-entering.
• The "Bigger the Base" Theory: Shannon notes that long periods of consolidation (e.g., 2.5 years for Match Group) often precede significant breakouts. He references Palantir as a successful example of a stock that consolidated for over a year before a major upward move.

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Analysis of Specific Stocks

• Micron (MU): Currently viewed as having a "thousand-dollar magnet." Traders are advised to hold if already in, but to use strict risk management rather than initiating new long-term positions at current elevated levels.
• Marvell (MRVL): Discussed in the context of upcoming earnings. Support levels identified at $192 (5-day moving average/anchor) and $175 (20-day moving average/anchor).
• Alphabet (GOOGL): Currently struggling to find vigor at the 20-day moving average. A "flush" below current levels followed by a recovery is preferred over buying into a declining 5-day moving average.
• ALKS & TGTX: Used as a case study for breaking ties between similar charts. Shannon prefers stocks with higher short interest and positive fundamental catalysts (e.g., 70% revenue growth in TGTX).
• Match Group (MTCH): Highlighted as a potential long-term play due to a multi-year consolidation pattern, suggesting it is in the "Stage 1 Accumulation" phase.

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Key Arguments and Perspectives

• Risk Management over Prediction: Shannon argues that "it only ends badly if you don't have a stop." He emphasizes that technical analysis is about managing probabilities and exits rather than predicting the exact top or bottom of a move.
• Fundamentals vs. Technicals: While Shannon is a technical trader, he incorporates fundamental "basics"—such as revenue growth and profitability—to confirm that there is genuine institutional interest in a stock.
• The "Anchor" Methodology: The use of specific anchor points (e.g., the April low) is presented as a superior way to identify support and resistance compared to generic time-based moving averages alone.

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Synthesis and Conclusion

The discussion concludes that in a strong, parabolic market, the most prudent strategy is to avoid chasing highs and instead wait for technical pullbacks to key support levels (VWAP, 20-day, or 50-day moving averages). Traders should prioritize stocks with strong fundamental growth and high short interest, while maintaining strict discipline through the use of staggered stops and partial profit-taking. The "bigger the base, the higher in space" philosophy remains a core tenet for identifying long-term opportunities in stocks that have undergone extended periods of consolidation.